NAR released a summary of pending home sales data showing that September's pending home sales pace declined 2.2 last month but rose substantially 20.5% from a year ago. This would be the fifth consecutive month of gains as well as the fourth year over year incline since the virus's impact on the housing market.
Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead Existing Home Sales data by 1 to 2 months.
All four regions showed double inclines from a year ago. The Northeast had the biggest gain in contract signings of 27.7% followed by the South with an increase of 19.6%. The South had an incline of 19.6% followed by the Midwest with the smallest gain of 18.5%.
From last month, three of the four regions showed declines in contract signings, with only the Northeast having a gain of 2.0%. The West fell 2.6% followed by the South with a drop of 3.0%. The Midwest had the biggest dip in contract signings of 3.2%.
The U.S. pending home sales index level for the month was 130.0.
September's incline brings the pending index above the 100-level mark for the fourth consecutive month since February 2020.
The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing-home sales above the 5 million mark.
