The National Association of Realtors (NAR) Monday morning released its data on pending sales of existing homes in September. The pending home sales index inched up 0.3% from an index reading of 104.7 in August to the September reading of 105.0. That is 1% higher than in September 2013, when the index reading was 104.0. The consensus estimate called for a month-over-month increase of 0.8% 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 September reading marks the first time in 11 months that the index has risen above the year-ago level. The index is above 100 for the fifth consecutive month and is at the second-highest level since last September.
The NAR’s chief economist noted:
Housing supply for existing homes was up in September 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year. Additionally, the current spectacularly low mortgage rates should help more buyers reach the market.
Whether or not mortgage rates are currently “spectacularly low” is a matter of interpretation. They have moved down steadily and are now bouncing right around 4%.
Pending home sales in the northeast United States increased 1.2% in September, posting an index reading of 87.5, but up 2.9% from September 2013. The index fell 1.2% in the Midwest and is 4% below last year’s reading. Pending sales rose 1.4% in the South, up 1.7% compared with a year ago, and slipped 0.8% in the West, but remains 3.6% above year-ago sales.
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