Pending home sales rose in October
Pending home sales rose in October – the third consecutive month of increases – according to the National Association of Realtors. All four major U.S. regions saw month-over-month gains in transactions, with the Northeast leading the way. Year-over-year, contract signings increased in all four U.S. regions, led by the West.
The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – elevated 2 percent to 77.4 in October. Year-over-year, pending transactions grew by 5.4 percent. (An index of 100 is equal to the level of contract activity in 2001.)
“Homebuying momentum is building after nearly two years of suppressed home sales,” said NAR Chief Economist Lawrence Yun. “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.”
SentriLock lockbox openings rose 7 percent in October compared to last year.
Pending home sales breakdown by region
The Northeast PHSI jumped 4.7 percent from last month to 68.7, up 7.2 percent from October 2023. The Midwest index grew 4 percent to 77.8 in October, up 1.8 percent from the previous year.
The South PHSI increased 0.9 percent to 90.0 in October, up 2.5 percent from a year ago. The West index edged higher 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,” added Yun. “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.”
