Pending home sales in the US slowed in December, latest data shows

After reaching a 19 month high, pending home sales in the United States eased in December but stayed above year ago levels, according to the latest figures from the National Association of Realtors. Its Pending Homes Sales Index, a forward looking indicator based on contract signings, declined 3.5% to 96.6 in December from 100.1 in November but is 5.6% above December 2010 when it was 91.5. But Lawrence Yun, NAR chief economist, said that the trend line remains positive. ‘Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period,’ he explained. ‘Contract failures remain an issue, reported by one third of realtors over the past few months, but home buyers are not giving up,’ he added. Yun said some buyers successfully complete the sale after a contract delay, while others stay in the market after a contract failure and make another offer. ‘Housing affordability conditions are too good to pass up. Our hope is lending conditions will gradually improve with sustained increases in closed existing home sales,’ he concluded. The PHSI in the Northeast declined 3.1% to 74.7 in December and is 0.8% below a year ago. In the Midwest the index rose 4% to 95.3 and is 13.3% higher than December 2010. Pending home sales in the South slipped 2.6% to an index of 101.1 in December but are 4.9%  above a year ago. And in the West the index fell 11% in December to 107.9 but is 3.7% higher than December 2010. (propertywire.com)

Everyone Loves a Story: The Importance of Storytelling in Sales

On November 9^th, Cornell Galleries auctioned an 18^th century Old Masters painting for $15,000. The painting, which depicted a Biblical scene of an angel peering over two men, was severely damaged.  Why, then, did it sell for such a high price? Likely because of the damage itself: a sizeable h*** in the center of the canvas. The story behind this is that Ruth Stone, the original owner of the painting, had a son who hated the picture so much, he shot an arrow through it.

Stories such as this can add extra allure to items at an auction or at retail sale. The painting, was an antique, but its character was enhanced by the added elements of history and humor. For buyers, a well told, interesting story can drive up the price of even an average item.

Wayne Jordan, a licensed auctioneer and appraiser from Virginia, who also runs Wayne Jordan Auctions, acknowledges this point. After a baseball cap worn by Neil Armstrong was sold for over $14,000, Jordan concluded that “what makes bragging rights valuable? It’s the quality of the story attached to the object. Collectors love to tell stories about the items they have collected”. Jordan also acknowledges that many of the stories that collectors tell are, in fact, from their own research, and not from the seller or auctioneer.

If the stories and history behind an object have the potential to increase an item’s value, then it follows naturally that owners should learn as much as possible about an item while it is in their possession. This especially pertains to auction houses and retailers. Knowing the story behind an item, and just as importantly, being able to tell that story well, can help to distinguish oneself from competitors, and generate increased revenues. (auctionzip.com)