Pending home sales rose 2.0% in October, the third straight month of gains

Pending home sales rose 2.0% in October, the third straight month of gains

WASHINGTON (November 27, 2024) – According to the National Association of REALTORS, pending home sales increased in October – the third straight month of gains®. All four major U.S. regions reported month-over-month increases in transactions, led by the Northeast. 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 – rose 2.0% to 77.4 in October. Year-over-year, outstanding transactions increased by 5.4%. An index of 100 represents the level of contract activity in 2001.

“Home buying is gaining momentum after nearly two years of suppressed home sales,” said NAR Chief Economist Lawrence Yun. “Although mortgage rates are rising slightly despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continued job gains and increased housing inventory are bringing more consumers into the market.”

SentriLock locker openings increased 7% in October compared to a year ago.

Pending home sales, regional breakdown

The Northeast PHSI rose 4.7% month-over-month to 68.7, up 7.2% from October 2023. The Midwest index rose 4.0% to 77.8 in October, up 1.8% more than last year.

The South PHSI rose 0.9% to 90.0 in October, up 2.5% from a year ago. The West Index rose slightly by 0.2% month-on-month to 64.1, up 16.8% from October 2023.

“It is encouraging to see that contract signings are increasing in all major regions of the country,” Yun added. “There were more notable increases than a year ago in the expensive regions in the northeast and west. Record high stock market buoys high-end home buyers.”

About the National Association of REALTORS®

The National Association of REALTORS® is America’s largest trade association, representing 1.5 million members working in all areas of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and adheres to its strict Code of Ethics. For free consumer guides to navigating the home buying and selling transaction processes – from written buyer contracts to negotiating compensation – visit Facts.realtor.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not yet been completed. However, the sale usually closes within a month or two of signing.

Outstanding contracts are good early indicators of impending sales. However, the length of time between outstanding contracts and closed sales is not the same for all home sales. Differences in the length of the process from pending contract to completed sale can be caused by issues such as buyer difficulty obtaining mortgage financing, home inspection problems, or appraisal problems.

The index is based on a sample covering approximately 40% of data from multiple listing services each month. In developing the model for the index, it was shown that the level of monthly sales contract activity corresponds to the level of completed sales of existing homes in the following two months.

An index of 100 corresponds to the average level of contract activity in 2001, the first year examined. Coincidentally, the volume of existing home sales in 2001 fell in the 5.0 to 5.5 million range, which is considered normal for the current US population.

NOTE: November existing home sales are reported on December 19th. The next pending home sales index will be released on December 30th. All release times are 10 a.m. Eastern Time. Check them out NAR Statistical Press Release Schedule.

Leave a Reply

Your email address will not be published. Required fields are marked *