Pending home sales during October marked the third consecutive month of upward movement, according to data from the National Association of Realtors (NAR).
The Pending Home Sales Index, NAR’s indicator of home sales based on contract signings, rose by 2.0% month-over-month to 77.4 in October. Year-over-year, the index was up by 5.4%. An index of 100 is equal to the level of contract activity in 2001.
All four major regions experienced month-over-month gains in transactions, with the Northeast leading the way. Year-over-year, contract signings increased in all four regions, led by the West.
“Homebuying momentum is building after nearly two years of suppressed home sales.” said NAR Chief Economist Lawrence Yun. “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.”
“It’s encouraging to see contract signings increasing in all major regions of the country,” added Yun. “More 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.”
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