Pending Homes Sales Experience Minor Decline in September

The National Association of Realtors® (NAR) has reported their Pending Homes Sales Index (PHSI), which is a leading indicator of housing activity and is based on signed real estate contracts, not actual closings, for existing single-family homes, condos, and co-ops, declined in September to a reading of 130.0. Year-over-year contract signings rose 20.5%. An index of 100 is equal to the level of contract activity in 2001. While all four regions recorded year-over-year increases, only the Northeast achieved month-over-month gains. Bringing the streak of four consecutive months of growth to an end. In prepared remarks Lawrence Yun, NAR’s chief economist said, “The demand for home buying remains super strong, even with a slight monthly pullback in September, and we’re still likely to end the year with more homes sold overall in 2020 than in 2019. With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future.”