Residential Real Estate News
U.S. Pending Home Sales Increase for Third Consecutive Month in October
According to the National Association of Realtors, U.S. pending home sales uptick in October - the third consecutive month of increases in 2024. All four major U.S. regions experienced month-over-month gains in transactions, with the Northeast leading the way. 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 - elevated 2.0% to 77.4 in October. Year-over-year, pending transactions expanded 5.4%. An index of 100 is equal to the level of contract activity in 2001.
"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."
SentriLock lockbox openings rose 7% in October compared to last year.
Pending Home Sales Regional Breakdown
The Northeast PHSI jumped 4.7% from last month to 68.7, up 7.2% from October 2023. The Midwest index grew 4.0% to 77.8 in October, up 1.8% from the previous year.
The South PHSI increased 0.9% to 90.0 in October, up 2.5% from a year ago. The West index edged higher by 0.2% from the prior month to 64.1, up 16.8% from October 2023.
"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."
