Pending Home Sales Climb Again in October

(Illustration courtesy of the National Association of Realtors)

Pending home sales increased in October–the third consecutive month of increases–the National Association of Realtors reported.

“All four major U.S. regions experienced month-over-month gains in transactions, with the Northeast leading the way,” the NAR Pending Home Sales Index report said. “Year-over-year, contract signings increased in all four U.S. regions, led by the West.”

The Pending Home Sales Index is a forward-looking indicator of home sales based on contract signings. It increased 2.0% in October to 77.4 . Year-over-year, pending transactions expanded 5.4%, NAR reported. 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,” 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.”

Yun said 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,” he said.