Number Of Contracts On Homes Increased And So Did Cancellations: Homes For Sale: Homes For Rent

More potential home buyers signed contracts in May 2011 on both a sequential and year-over-year basis, according to the National Association of Realtors (NAR). Pending home sales rose 2.4% in May over April 2011 and an increase of 30% over June 2010, according to NAR.

However, NAR also noted a huge jump in cancellations of pending home sale contracts. In May 2011 about 16% of contracts did not make it to a closing, which compares with the normal rate of about 4%, according to NAR.

Some reasons why: uncertainty about job security and the US economy; increased time needed to obtain financing; tighter underwriting restrictions; longer time to get appraisals completed; and the increased popularity of short-sales, which take longer than normal sales-- which causes some potential buyers to cancel as well.

The positive is potential homeowners are being more active. However, some of the same issues still remain: economy, financing and the patience required for distressed property sales.

If the potential homebuyer is aware of some of these potential issues, it will be easier for them to make a more firm commitment from the outset. That is why I try to educate my clients looking to purchase a home from the beginning of our journey of finding a suitable new home.

It is also important for my clients who are selling their homes to be aware of these issues as well. We try to mitigate the potential for problems later on in the process by bringing to light these same issues with the prospective buyer at the first sign of interest.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Also, text me your name and e-mail address if you would like home search capabilities.


Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty