Nosediving home values and low mortgage rates pushed homebuying levels higher in December. The index for pending home sales measures the number of sales contracts signed each month. It rose 6.3% in December (87.7), after a drop of 4% in November (82.5).

Uncertainty with the housing market still causes fear with buyers and sellers, even with the affordability improving with real estate. To create the foundation for the national real estate market, we require a housing market recovery and an economic recovery, and to make that happen we need a significant housing stimulus for qualified borrowers.

Foreclosure property sales were a big factor in the index’s improvement. Foreclosures and short sales are now more than 30% of all US home sales. What a significant percentage! That must mean that the deals are surely out there.

The low mortgage rates, the average rate being at 5.29% in December, pushed housing affordability to record levels. Buying a home now is the most affordable it has ever been since 1970. Home prices have also dropped as the number of foreclosures rose in each local market.

But there’s one big problem. There’s an excess of homes on the market, and there’s not enough buying going on. There are large groups of people that want to buy, but because they don’t have great credit, they’re refused by the banks. The banks are refusing too many, while they finance too little.

There are great deals out in the Tucson real estate market today, but you might have to work a bit to get financed. But with the savings you can make today buying, that amount of work put in the beginning is well worth it.

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