Pending Home Sales Increased 7.4% in September

WASHINGTON – Pending home sales rose in September, according to the National Association of Realtors. 

All four major regions experienced month-over-month gains in transactions. Year-over-year, the Northeast and West registered increases, while sales remained steady in the Midwest and South.

The Pending Home Sales Index – a forward-looking indicator of home sales based on contract signings – jumped 7.4% to 75.8 in September, the highest level since March (78.3). Year-over-year, pending transactions rose 2.6%.

“Contract signings rose across all regions of the country as buyers took advantage of the combination of lower mortgage rates in late summer and more inventory choices,” said Lawrence Yun, chief economist for the National Association of Realtors. “Further gains are expected if the economy continues to add jobs, inventory levels grow and mortgage rates hold steady.”

In the next two years, Yun foresees slower home price appreciation and corresponding increases in sales.

“After two years of sluggish home sales in 2023 and 2024, existing home sales are forecasted to rise to 4.47 million in 2025 and more than 5 million in 2026,” Yun said. “During the next two years, expect a slower rate of growth in home prices that’s roughly in line with the consumer price index because of additional supply reaching the market.”

Yun predicts the median existing home price will rise to $410,700 in 2025 and to $420,000 in 2026. He expects the annual 30-year fixed mortgage rate to slide to 5.9% in 2025 but then move higher to 6.1% in 2026.

The National Association of Realtors’ economic and housing outlook as of October can be viewed HERE.

Published by The Business Journal, Youngstown, Ohio.