by Year-over-year and monthly activity rises in the Northeast and South, but falls in the Midwest and West
WASHINGTON — Pending home sales fell .9% from September but remained level from August, according to the National Association of Realtors Pending Home Sales report released late last week.
Reflecting the level of home sales under contract, both year-over-year and monthly pending home sales rose in the Northeast and South, but fell in the Midwest and West.
“Contract signings matched the second-strongest pace of the year,” said NAR Chief Economist Lawrence Yun. “However, signings have yet to fully reach the level needed for a healthy market despite mortgage rates reaching a one-year low. A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market.”
He added that housing inventory has risen to a five-year high, which gives homebuyers more options and ability to negotiate on price.
“Looking ahead, mortgage rates are trending toward three-year lows, which should further improve affordability, though the government shutdown could temporarily slow home sales activity,” Yun said.
The level of pending home sales bodes well for the industry as it preceded the latest interest rate decrease of 25 basis points announced by the Fed on Wednesday, Oct. 29. Experts believe that will trigger additional existing home sales and homes going under contract in the coming weeks, which in turn could result in more furniture sales.
According to the NAR, the September Realtors Confidence Index survey noted that 20% of NAR members expect an increase in buyer traffic over the next three months, down from 21% in September 2024 and up slightly from 19% in August. The survey also showed that 19% expect an increase in seller traffic, up from 20% in September 2024 and unchanged from August.
By region, pending home sales were as follows:
+ In the Northeast, there was a .5% increase from September 2024 and a 3.1% increase from August.
+ In the Midwest, there was a 1.5% decrease from September 2024 and a 3.4% decrease from August.
+ In the South, there was a .9% increase from September 2024 and a 1.1% increase from August.
+ And in the West, there was a 5.3% decrease from September 2024 and a .2% decrease from August.
