Driven by an improved housing inventory, pending home sales rose modestly in October, marking its third-consecutive monthly increase, according to data released on Wednesday by NAR.
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Pending home sales rose modestly in October, marking the third consecutive monthly increase, driven by improved housing inventory, according to new data released Wednesday by the National Association of Realtors (NAR).
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The Pending Home Sales Index (PHSI) climbed 2.0 percent to 77.4 in October, with contract signings increasing 5.4 percent year over year.
Lawrence Yun | Chief economist at the National Association of Realtors
NAR Chief Economist Lawrence Yun highlighted that along with increasing inventory, job growth also helped bolster buyer confidence, even as mortgage rates remain elevated.
“Homebuying momentum is building after nearly two years of suppressed home sales.” NAR Chief Economist Lawrence Yun said. “Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.”
Compared to last month, all four U.S. regions experienced month-over-month gains in pending sales, with the Northeast leading in sales. Year over year, contract signings rose across all four U.S. regions, with the West showing the highest increase.
The Northeast PHSI rose 4.7 percent from last month to 68.7, a 7.2 percent increase from the previous year. The PHSI in the Midwest increased 4.0 percent to 77.8 in October, up 1.8 percent from 2023.
In the South, the PHSI inched up 0.9 percent to 90.0 in October, up 2.5 percent from the previous year. The West PHSI slightly inched up by 0.2 percent from the prior month to 64.1, up 16.8 percent from October 2023.
“It’s encouraging to see contract signings increasing in all major regions of the country,” Yun added. “More notable gains from a year ago occurred in the expensive regions of the Northeast and West. The record-high stock market is providing a boost for upper-end home buyers.”