September Pending Home Sales Dip 2.2%
After four straight months of contract activity growth, pending home sales declined by 2.2% in September, the National Association of Realtors reported yesterday.
The Pending Home Sales Index, (www.nar.realtor/pending-home-sales), a forward-looking indicator of home sales based on contract signings, fell 2.2% to 130.0 in September. Year-over-year, however, contract signings rose by 20.5%.
Three of four regional indices recorded decreases in contract activity on a month-over-month basis in September. In the Northeast, the index rose by 2 percent to 119.4 in September and improved by 27.7% increase from a year ago. In the Midwest, the index fell by 3.2% to 120.5 in September but improved by 18.5% from a year ago.
Pending home sales in the South decreased by 3% to 150.1 in September but improved 19.6% from a year ago. The index in the West fell by 2.6% in September to 116.8 but improved by 19.3% from a year ago.
“The demand for home buying remains super strong, even with a slight monthly pullback in September, and we’re still likely to end the year with more homes sold overall in 2020 than in 2019,” said NAR Chief Economist Lawrence Yun. “With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future.”