The National Association of Realtors (NAR) Wednesday morning released its data on pending sales of existing homes in October. The pending home sales index slipped 1.1% from an upwardly revised index reading of 105.3 in September to the October reading of 104.1. That’s 2.2% higher than in October 2013 when the index reading was 101.9. The consensus estimate called for a month-over-month increase of 0.6% in pending sales. The index reflects signed contracts, not sales closings. An index reading of 100 equals the average level of contract signings during 2001.

The index is above 100 for the sixth consecutive month even though were October sales down slightly. The NAR’s chief economist noted:

In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash. Demand is holding steady but would be more robust if it weren’t for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents.

Pending home sales in the Northeast U.S. increased 0.5% in October, posting an index reading of 87.9, but up 3.4% from October 2013. The index fell 0.6% in the Midwest and is 3% below last year’s reading. Pending sales dropped 1% in the South, but remain 3.9% higher than a year ago, and sales fell 3.2% in the West, but remain 4.1% above year-ago sales.

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