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Good Time to Buy Cabo Real Estate?

We often say that when the United States sneezes, Mexico gets a cold.  But it applies equally to good economic markers in the U.S. and for that reason, we, in Los Cabos, are looking forward to a decided rise in home sales for the remainder of 2012 and well into 2013.

Pending home sales were little changed in September but remain well above a year ago,

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

Pending home sales have risen for 17 consecutive months on a year-over-year basis, leading to the solid recovery seen in closed existing-home sales this year. In September all regions were showing double-digit increases in contract activity from a year ago with the exception of the West, which is constrained by limited inventory.

Housing affordability conditions are forecast to remain favorable through next year, with the 30-year fixed-rate mortgage staying near record lows for the balance of this year but gradually rising to 4 percent in the second half of 2013.

Completed existing-home sales in 2012 will total close to 4.6 million, an increase of 9 percent, and are projected to rise about 9 percent next year to nearly 5.1 million. With notably lower housing inventory, the national median existing-home price is expected to increase 6 percent this year and 5 percent in 2013.

 

With projections showing an increase in home prices, maybe now would be a good time to buy.

Posted: Tuesday, November 06, 2012 12:00 PM by Nick Fong

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