Pending home sales increased modestly in October, the third straight month of increases, due to improved housing inventory, according to data released by NAR on Wednesday.
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Pending home sales increased modestly in October, marking the third straight month of increases due to improving 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) rose 2.0% to 77.4 in October, with the number of contracts increasing 5.4% year-on-year.
Lawrence Yun | Chief Economist, National Association of Realtors
Lawrence Yun, NAR’s chief economist, emphasized that employment growth, along with rising inventory, are also helping to boost buyer confidence, even though mortgage rates remain high.
“After nearly two years of subdued home sales, home buying momentum is picking up,” said NAR Chief Economist Lawrence Yun. “Despite the U.S. Federal Reserve’s decision to cut short-term interbank lending rates in September and mortgage rates are rising moderately, continued employment growth and housing Increasing inventory is bringing more consumers into the market.”
Compared to last month, all four U.S. regions have seen month-over-month increases in pending sales, with the Northeast leading in sales. Year-over-year, all four regions of the U.S. have seen an increase in contract signings, with the West seeing the highest growth.
The Northeast PHSI rose 4.7% month-on-month to 68.7, and rose 7.2% year-on-year. The Midwest PHSI increased 4.0% in October to 77.8, an increase of 1.8% from 2023.
In the South, the PHSI rose 0.9% to 90.0 in October, up 2.5% year over year. The Western PHSI increased by 0.2% from the previous month to 64.1, and increased by 16.8% from October 2023.
“It is encouraging to see an increase in contract signings 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, where stock markets at all-time highs are a tailwind for luxury home buyers.”
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