Pending Sales of Existing Homes Increase 1.5% in September
Contracts to purchase previously owned U.S. homes increased in September for a second month in the past three, the National Association of Realtors said Oct. 27 in Washington, signaling that strong job growth and rising wages are supporting housing demand.
Key Points
• Pending home sales rose 1.5% (median estimate was for 1% gain) after a revised 2.5% decline in August.
• Seasonally adjusted index climbed to 110 from 108.4.
• Contract signings were up 2% from September 2015 on an unadjusted basis.
Big Picture
The gain follows reports showing increases last month in sales of both previously owned and new residences.
The Realtor group said a paucity of listings is keeping prices relatively high and making searching by interested buyers more difficult. At the same time, historically low borrowing rates and solid hiring continue to support purchases for those looking to trade up.
Economist Takeaways
“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,” Lawrence Yun, NAR’s chief economist, said in a statement.
Other Details
• Pending sales were led by a 4.7% increase in the West and a 1.9% gain in the South.
• Purchase contracts fell in the Northeast and Midwest.
• Index of pending sales remains below 10-year high of 115 reached in April.
