September Pending Home Sales Rise Slightly

The NAR’s chief economist noted:

Home contract activity remains at an elevated level in contrast with recent years, but currently appears to be bouncing around in a narrow range. This means only minor movement is likely in near-term existing-home sales, but with positive underlying market fundamentals they should continue on an uptrend in 2013.

Every region of the country except the West is experiencing double-digit increases in contract signings. The West region is being constrained by an inventory shortage. Pending sales in the South are the highest, at 111.5, up 17.6% compared with last September. The reading in the West is 106.9, only 0.8% higher than a year ago.

The NAR projects existing home sales to rise 9% in 2012 and another 9% in 2013, while home prices rise by 6% in 2012 and 5% in 2013.

Paul Ausick