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Lynnfield Real Estate Tips-TopAgentToday.com

If you're looking to sell or buy a house in the Lynnfield area, now is the time to get out into the market.  The Pending Home Sales Index (PHSI) which is based on home purchase contracts, reached the highest in May that it has achieved since late 2006, which is due in part to the fact that interest rates are rising.  Buyers are active now because they assume that rates will continue to rise.

The PHSI increased 6.7 percent to 112.3 in May from April's level of 105.2 (revised down from an original estimate of 106.0.) The May number was 12.1 percent above the PHSI in May 2012 when it was 100.2 The index has been higher than in the corresponding month a year earlier for each of the last 25 months and the May number was the highest for the Index since December 2006 when it was 112.8.

The Index is a forward looking indicator based which has proven to be predictive of home sales. Transactions under contract are generally expected to close within 60 days. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined.

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NAR's chief economist Lawrence Yun said the recent rising interest rates may be creating a fence-jumping effect. "Even with limited choices, it appears some of the rise in contract signings could be from buyers wanting to take advantage of current affordability conditionsbefore mortgage interest rates move higher," he said.  "This implies a continuation of double-digit price increases from a year earlier, with a strong push from pent-up demand."

Yun said he expected the national median existing-home price to rise more than 10 percent to nearly $195,000 by year end.  This would be the strongest increase since 2005 when the median increased 12.4 percent.

Find out what's happening in Lynnfieldwith free, real-time updates from Patch.

Existing-home sales are projected to increase 8.5 to 9.0 percent, reaching about 5.07 million in 2013, the highest in seven years; it would be slightly above the 5.03 million total recorded in 2007.

Looking to find a top realtor in your area? Contact us at: (978) 255-4937

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