Kevin Sears President | Official website
Pending home sales in the United States remained unchanged in September compared to the previous month, and were down 0.9% from a year earlier, according to the latest Pending Home Sales Report released by the National Association of Realtors (NAR). The report tracks contract signings for home purchases and is considered an indicator of future closed sales.
Regionally, pending home sales increased in both the Northeast and South, while declines were recorded in the Midwest and West. Specifically, the Northeast saw a 3.1% monthly increase and a 0.5% annual rise. The South reported a 1.1% increase month over month and a 0.9% gain year over year. In contrast, the Midwest experienced a 3.4% monthly drop and a 1.5% decrease from last year, while the West posted a slight 0.2% decline month over month and was down 5.3% annually.
The REALTORS Confidence Index survey for September indicated that expectations among NAR members for buyer traffic rose slightly to 20%, up from 19% last month but down from 21% one year ago. Expectations for seller traffic held steady at 19%, unchanged from August but slightly lower than the 20% reported in September 2024.
NAR Chief Economist Lawrence Yun commented on the data: "Contract signings matched the second-strongest pace of the year. However, signings have yet to fully reach the level needed for a healthy market despite mortgage rates reaching a one-year low." He added: "A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market."
Yun also addressed inventory trends: "Inventory has climbed to a five-year high, giving home buyers more options and room for price negotiation," he said. "Looking ahead, mortgage rates are trending toward three-year lows, which should further improve affordability, though the government shutdown could temporarily slow home sales activity."
The Pending Home Sales Index (PHSI), used as a basis for these statistics, is regarded as an early indicator of upcoming home sales closings since it measures contracts signed but not yet finalized.
The NAR noted that variations can occur between contract signing and closing due to factors such as mortgage financing issues or appraisal problems.
The association reminded consumers that free guides on buying or selling homes are available at facts.realtor.
Existing-home sales figures for October are scheduled to be released on November 20; the next update of pending home sales will follow on November 25.
