Pending home sales in US increases 7.4 percent in September
Date
10/31/2024 8:03:46 AM
(MENAFN) Pending home sales in the United States saw a significant increase of 7.4 percent in September, according to data released on Wednesday by the National Association of Realtors (NAR). The pending home sales index, which serves as a forward-looking indicator based on contract signings, rose to 75.8 in September. This marks the highest level recorded since March when the index stood at 78.3. The substantial increase in pending home sales far exceeded market expectations, which had anticipated only a 1.9 percent rise, following a more modest gain of 0.6 percent in August.
The data indicated that pending home sales increased across all regions in the US on a monthly basis, signaling a broad-based recovery in the housing market. Lawrence Yun, the NAR’s chief economist, noted that the rise in contract signings was driven by buyers capitalizing on the combination of lower mortgage rates observed in late summer and an increase in available inventory. This suggests that the favorable market conditions have spurred more buyers to enter the market, contributing to the overall increase in pending sales.
Looking ahead, Yun expressed optimism about the potential for further gains in pending home sales, contingent on several factors. He mentioned that if the economy continues to create jobs, inventory levels increase, and mortgage rates remain stable, there could be additional positive momentum in the housing market. The combination of these elements could encourage even more buyers to sign contracts in the coming months.
In comparison to September of the previous year, pending transactions were up 2.6 percent, reflecting a year-over-year increase in home sales activity. This annual growth further illustrates the resilience of the housing market amid various economic challenges, as buyers appear to be responding positively to the current conditions, thereby bolstering demand for homes.
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