by NAR’s October Pending Home Sales Index falls .4% from last year but rises nearly 2% from September
WASHINGTON — The National Association of Realtors recently reported that its Pending Home Sales Index declined slightly from October 2024 but rose nearly 2% from September.
The index totaled 76.3, falling .4% from October 2024, with gains in the Midwest and South and declines in the Northeast and West.
Month-over-month pending home sales rose in the Northeast, Midwest and South and declined in the West.
The percent of change in pending home sales is based on the Pending Home Sales Index, which is based on home-contract signings. An index of 100 is equal to the level of contract activity in 2001.
“The Midwest shined above other regions due to better affordability, while contract signings retreated in the more expensive West region,” said NAR Chief Economist Lawrence Yun. “Days on the market typically lengthen from November through February, providing better negotiating power to buyers during the holiday season.”
“Job gains in September, following the data blackout, are reassuring and suggest the economy is not slipping into a recession,” Yun added. “This may boost confidence in future homebuying.”
Also, the NAR Realtors Confidence Index October survey noted that that 17% of NAR members expect an increase in buyer traffic over the next three months, down from 19% in October 2024 and down from 20% in September. In comparison, 16% said they expect an increase in seller traffic, which compares to 19% in October 2024 and 19% in September.
By region activity was as follows:
+ In the Northeast, the index totaled 67.2, down 1% from October 2024 and up 2.3% from September.
+ In the Midwest, the index totaled 77.7, up .9% from October 2024 and up 5.3% from September.
+ In the South, the index totaled 91.4, up 2% from October 2024 and up 1.4% from September.
+ In the West, the index totaled 58.2, down 7% from October 2024 and down 1.5% from September.
The index gives retailers another barometer of anticipated existing housing sales in the near future. As home sales typically spur furniture sales, the level of closings in November and December could determine how well retailers do, particularly heading into the holiday season and the start of the new year.
