Pending Home Sales Unexpectedly Spike In May

The summer housing market is heating up.

According to data from the National Association of REALTORS®, the Pending Home Sales Index smashed analyst expectations, jumping 8 percent on a monthly basis in May. 

Wall Street calls were for an increase of just 0.5 percent. 

It was a surprise result that, coupled with the recent stronger-than-expected New Home Sales and Existing Home Sales readings, has sparked housing market optimism in Georgia and nationwide.

The biggest reason for the optimism is because of what the Pending Home Sales Index measures. 

In contrast to "traditional" housing data which reports on how housing performed two months ago, for example, the Pending Home Sales Index is a forward-looking indicator; a predictor of future market activity based on freshly-written contracts between buyers and sellers.

In other words, the Pending Home Sales Index looks ahead -- not back. This is reflected in its methodology which states that 80% of homes under contract close within 2 months, and a large percentage of the rest close within Months 3 and 4.

Because May's Pending Home Sales Index rose sharply, therefore, we can expect similar jumps in the Existing Home Sales figures of June and July.

For housing and home prices, this is a positive but the gains won't apply to each home equally. The Pending Home Sales Index is still a national report for a market built on local sales. What's happening on your particular street in your particular neighborhood may not reflect what's happening somewhere else.

For accurate, real-time data in your local market, ask a real estate agent for statistics.

 

Home Values Climb 0.8 Percent In April

Maybe homes in Kennesaw are holding value better than we thought.

Between March and April of this year, home values rose 0.8 percent nationally, according to the Federal Housing Finance Agency's Home Price Index. It's the index's first month-to-month improvement since May of last year.

Values are down 19 percent since peaking 4 years ago.

Private-sector data affirms the government's report. 

Tuesday, the S&P's Case-Shiller Index also showed home values higher by 0.8 percent in April, on a monthly basis. Led by Washington, D.C. and San Francisco, 13 of the Case-Shiller's 20 tracked markets showed improvement in April. 

In March, just 2 markets did.

As a home seller in or near Vinings , it's nice to see reports of rising home prices after multiple months of "bad news". However, the data may not be as rosy as it appears to be. National real estate surveys including the Home Price Index and the Case-Shiller Index are flawed for everyday buyers and sellers.

The biggest flaw is "age". Both the Home Price Index and the Case-Shiller Index report on a near 2-month delay.

This week, the calendar turns to July. Yet, we're still discussing housing news from April. The housing market of 60 days ago was very different from the housing market of today. Mortgage rates are different, market drivers are different, and the pool of buyers is likely different, too.

We can't discuss today's housing market with "April" in mind. The data is irrelevant.

Another flaw is that both reports are national in scope. Real estate, by contrast, is local.

When we cite the Home Price Index or the Case-Shiller Index, for example, and say "home values rose 0.8% in April", we're just giving a national average. On the local level, some markets rose by more, some rose by less, and others actually fell.

People buy homes on a specific block of a specific street in a specific neighborhood. Data for homes like that can't be captured in a national survey.

The group that gets the most value from the Home Price Index and Case-Shiller is Wall Street and policy-makers. The indices do a fair job of reporting how housing behaves as a whole, but for individuals concerned with buying and selling homes, the best place to find real-time, accurate data is from a real estate professional.

Top 25 Least Expensive U.S. Cities

A report issued Monday by the U.S. government showed core inflation rising 2.5 percent in the last 12 months for its biggest one-year gain since January 2010.

Everyday living is becoming expensive, it seems.

But there are some U.S. towns in which the cost of living remains affordable -- and downright cheap -- as compared to the national average. They're detailed in a BusinessWeek piece titled "The Cheapest 25 Cities In The U.S".

In comparing costs across 340 urban areas as compiled by the Council of Community & Economic Research, cities in Texas, Arkansas, Tennessee and Oklahoma ranked consistently high. Cities in Hawaii did not.

Take note, though. Although the BusinessWeek piece highlights inexpensive cities in which to live, a low cost of living does not necessarily correlate to a high standard of living. Cost-leader Harlingen, Texas, for example, boasts a poverty rate nearly triple the national average.

Other "Inexpensive Cities" feature similar poverty rates.

The Top 10 "cheapest cities", as shown by BusinessWeek are:

1. Harlingen, Texas
2. Pueblo, Colorado
3. Pryor Creek, Oklahoma
4. McAllen, Texas
5. Cookeville, Tennessee
6. Commerce-Hunt County, Texas
7. Brownsville, Texas
8. Fort Smith, Arkansas
9. Muskogee, Oklahoma
10. Springfield, Illinois

And, at the other end of the spectrum, the top 5 most expensive cities/areas were, in order, Manhattan, New York; Brooklyn, New York; Honolulu, Hawaii; San Francisco, CA; and Queens, New York.

Manhattan's cost of living is more than twice the national average.

The complete list is available at the BusinessWeek website.

FHA Georgia County Loan Limits 2011

County Name

Single Family

Duplex

Tri-plex

Four-plex

---

APPLING

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

ATKINSON

$271,050

$347,000

$419,425

$521,250

DOUGLAS, GA (MICRO)

---

BACON

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

BAKER

$271,050

$347,000

$419,425

$521,250

ALBANY, GA (MSA)

---

BALDWIN

$271,050

$347,000

$419,425

$521,250

MILLEDGEVILLE, GA (MICRO)

---

BANKS

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

BARROW

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

BARTOW

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

BEN HILL

$271,050

$347,000

$419,425

$521,250

FITZGERALD, GA (MICRO)

---

BERRIEN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

BIBB

$271,050

$347,000

$419,425

$521,250

MACON, GA (MSA)

---

BLECKLEY

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

BRANTLEY

$276,250

$353,650

$427,450

$531,250

BRUNSWICK, GA (MSA)

---

BROOKS

$271,050

$347,000

$419,425

$521,250

VALDOSTA, GA (MSA)

---

BRYAN

$271,050

$347,000

$419,425

$521,250

SAVANNAH, GA (MSA)

---

BULLOCH

$271,050

$347,000

$419,425

$521,250

STATESBORO, GA (MICRO)

---

BURKE

$271,050

$347,000

$419,425

$521,250

AUGUSTA-RICHMOND COUNTY, GA-SC (MSA)

---

BUTTS

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

CALHOUN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

CAMDEN

$271,050

$347,000

$419,425

$521,250

ST. MARYS, GA (MICRO)

---

CANDLER

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

CARROLL

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

CATOOSA

$271,050

$347,000

$419,425

$521,250

CHATTANOOGA, TN-GA (MSA)

---

CHARLTON

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

CHATHAM

$271,050

$347,000

$419,425

$521,250

SAVANNAH, GA (MSA)

---

CHATTAHOOCHEE

$289,800

$371,000

$448,450

$557,300

COLUMBUS, GA-AL (MSA)

---

CHATTOOGA

$271,050

$347,000

$419,425

$521,250

SUMMERVILLE, GA (MICRO)

---

CHEROKEE

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

CLARKE

$298,750

$382,450

$462,300

$574,500

ATHENS-CLARKE COUNTY, GA (MSA)

---

CLAY

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

CLAYTON

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

CLINCH

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

COBB

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

COFFEE

$271,050

$347,000

$419,425

$521,250

DOUGLAS, GA (MICRO)

---

COLQUITT

$271,050

$347,000

$419,425

$521,250

MOULTRIE, GA (MICRO)

---

COLUMBIA

$271,050

$347,000

$419,425

$521,250

AUGUSTA-RICHMOND COUNTY, GA-SC (MSA)

---

COOK

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

COWETA

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

CRAWFORD

$271,050

$347,000

$419,425

$521,250

MACON, GA (MSA)

---

CRISP

$271,050

$347,000

$419,425

$521,250

CORDELE, GA (MICRO)

---

DADE

$271,050

$347,000

$419,425

$521,250

CHATTANOOGA, TN-GA (MSA)

---

DAWSON

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

DECATUR

$271,050

$347,000

$419,425

$521,250

BAINBRIDGE, GA (MICRO)

---

DEKALB

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

DODGE

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

DOOLY

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

DOUGHERTY

$271,050

$347,000

$419,425

$521,250

ALBANY, GA (MSA)

---

DOUGLAS

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

EARLY

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

ECHOLS

$271,050

$347,000

$419,425

$521,250

VALDOSTA, GA (MSA)

---

EFFINGHAM

$271,050

$347,000

$419,425

$521,250

SAVANNAH, GA (MSA)

---

ELBERT

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

EMANUEL

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

EVANS

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

FANNIN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

FAYETTE

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

FLOYD

$271,050

$347,000

$419,425

$521,250

ROME, GA (MSA)

---

FORSYTH

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

FRANKLIN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

FULTON

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

GILMER

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

GLASCOCK

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

GLYNN

$276,250

$353,650

$427,450

$531,250

BRUNSWICK, GA (MSA)

---

GORDON

$271,050

$347,000

$419,425

$521,250

CALHOUN, GA (MICRO)

---

GRADY

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

GREENE

$662,500

$848,100

$1,025,200

$1,274,050

NON-METRO

---

GWINNETT

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

HABERSHAM

$271,050

$347,000

$419,425

$521,250

CORNELIA, GA (MICRO)

---

HALL

$271,050

$347,000

$419,425

$521,250

GAINESVILLE, GA (MSA)

---

HANCOCK

$271,050

$347,000

$419,425

$521,250

MILLEDGEVILLE, GA (MICRO)

---

HARALSON

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

HARRIS

$289,800

$371,000

$448,450

$557,300

COLUMBUS, GA-AL (MSA)

---

HART

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

HEARD

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

HENRY

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

HOUSTON

$271,050

$347,000

$419,425

$521,250

WARNER ROBINS, GA (MSA)

---

IRWIN

$271,050

$347,000

$419,425

$521,250

FITZGERALD, GA (MICRO)

---

JACKSON

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

JASPER

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

JEFF DAVIS

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

JEFFERSON

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

JENKINS

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

JOHNSON

$271,050

$347,000

$419,425

$521,250

DUBLIN, GA (MICRO)

---

JONES

$271,050

$347,000

$419,425

$521,250

MACON, GA (MSA)

---

LAMAR

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

LANIER

$271,050

$347,000

$419,425

$521,250

VALDOSTA, GA (MSA)

---

LAURENS

$271,050

$347,000

$419,425

$521,250

DUBLIN, GA (MICRO)

---

LEE

$271,050

$347,000

$419,425

$521,250

ALBANY, GA (MSA)

---

LIBERTY

$271,050

$347,000

$419,425

$521,250

HINESVILLE-FORT STEWART, GA (MSA)

---

LINCOLN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

LONG

$271,050

$347,000

$419,425

$521,250

HINESVILLE-FORT STEWART, GA (MSA)

---

LOWNDES

$271,050

$347,000

$419,425

$521,250

VALDOSTA, GA (MSA)

---

LUMPKIN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

MACON

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

MADISON

$298,750

$382,450

$462,300

$574,500

ATHENS-CLARKE COUNTY, GA (MSA)

---

MARION

$289,800

$371,000

$448,450

$557,300

COLUMBUS, GA-AL (MSA)

---

MCDUFFIE

$271,050

$347,000

$419,425

$521,250

AUGUSTA-RICHMOND COUNTY, GA-SC (MSA)

---

MCINTOSH

$276,250

$353,650

$427,450

$531,250

BRUNSWICK, GA (MSA)

---

MERIWETHER

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

MILLER

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

MITCHELL

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

MONROE

$271,050

$347,000

$419,425

$521,250

MACON, GA (MSA)

---

MONTGOMERY

$271,050

$347,000

$419,425

$521,250

VIDALIA, GA (MICRO)

---

MORGAN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

MURRAY

$271,050

$347,000

$419,425

$521,250

DALTON, GA (MSA)

---

MUSCOGEE

$289,800

$371,000

$448,450

$557,300

COLUMBUS, GA-AL (MSA)

---

NEWTON

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

OCONEE

$298,750

$382,450

$462,300

$574,500

ATHENS-CLARKE COUNTY, GA (MSA)

---

OGLETHORPE

$298,750

$382,450

$462,300

$574,500

ATHENS-CLARKE COUNTY, GA (MSA)

---

PAULDING

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

PEACH

$271,050

$347,000

$419,425

$521,250

FORT VALLEY, GA (MICRO)

---

PICKENS

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

PIERCE

$271,050

$347,000

$419,425

$521,250

WAYCROSS, GA (MICRO)

---

PIKE

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

POLK

$271,050

$347,000

$419,425

$521,250

CEDARTOWN, GA (MICRO)

---

PULASKI

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

PUTNAM

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

QUITMAN

$271,050

$347,000

$419,425

$521,250

EUFAULA, AL-GA (MICRO)

---

RABUN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

RANDOLPH

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

RICHMOND

$271,050

$347,000

$419,425

$521,250

AUGUSTA-RICHMOND COUNTY, GA-SC (MSA)

---

ROCKDALE

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

SCHLEY

$271,050

$347,000

$419,425

$521,250

AMERICUS, GA (MICRO)

---

SCREVEN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

SEMINOLE

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

SPALDING

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

STEPHENS

$271,050

$347,000

$419,425

$521,250

TOCCOA, GA (MICRO)

---

STEWART

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

SUMTER

$271,050

$347,000

$419,425

$521,250

AMERICUS, GA (MICRO)

---

TALBOT

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

TALIAFERRO

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

TATTNALL

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

TAYLOR

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

TELFAIR

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

TERRELL

$271,050

$347,000

$419,425

$521,250

ALBANY, GA (MSA)

---

THOMAS

$271,050

$347,000

$419,425

$521,250

THOMASVILLE, GA (MICRO)

---

TIFT

$271,050

$347,000

$419,425

$521,250

TIFTON, GA (MICRO)

---

TOOMBS

$271,050

$347,000

$419,425

$521,250

VIDALIA, GA (MICRO)

---

TOWNS

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

TREUTLEN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

TROUP

$271,050

$347,000

$419,425

$521,250

LAGRANGE, GA (MICRO)

---

TURNER

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

TWIGGS

$271,050

$347,000

$419,425

$521,250

MACON, GA (MSA)

---

UNION

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

UPSON

$271,050

$347,000

$419,425

$521,250

THOMASTON, GA (MICRO)

---

WALKER

$271,050

$347,000

$419,425

$521,250

CHATTANOOGA, TN-GA (MSA)

---

WALTON

$346,250

$443,250

$535,800

$665,850

ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA)

---

WARE

$271,050

$347,000

$419,425

$521,250

WAYCROSS, GA (MICRO)

---

WARREN

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

WASHINGTON

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

WAYNE

$271,050

$347,000

$419,425

$521,250

JESUP, GA (MICRO)

---

WEBSTER

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

WHEELER

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

WHITE

$271,050

$347,000

$419,425

$521,250

NON-METRO

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WHITFIELD

$271,050

$347,000

$419,425

$521,250

DALTON, GA (MSA)

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WILCOX

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

WILKES

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

WILKINSON

$271,050

$347,000

$419,425

$521,250

NON-METRO

---

WORTH

$271,050

$347,000

$419,425

$521,250

ALBANY, GA (MSA)