Pending Home Sales Edge Up in September

Pending home sales shifted higher in September following August’s notable dip and are now at their fifth highest level over the past year. Increases in the South and West outgained declines in the Northeast and Midwest.

Lawrence Yun, NAR chief economist, says a robust increase in the West and a healthy bump in the South pushed pending sales upward in September. “Buyer demand is holding up impressively well this fall with Realtors® reporting much stronger foot traffic compared to a year ago,” he said. “Although depressed inventory levels are keeping home prices elevated in most of the country, steady job gains and growing evidence that wages are finally starting to tick up are encouraging more households to consider buying a home.”

The index in the Northeast fell 1.6% in September, but is still 7.7% above a year ago. In the Midwest the index declined modestly (0.2%) in September, and is now 1.0% lower than September 2015.

Pending home sales in the South rose 1.9% in September and are now 1.7% higher than last September. The index in the West jumped 4.7% in September, and is now 4.0% above a year ago.