The National Association of Realtors® (NAR) reported on Monday (11-29-21) that their Pending Homes Sales Index (PHSI) — based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops — increased 7.5% month-over-month in October 2021 to a reading of 125.2. An index of 100 is equal to the level of contract activity in 2001.
Contract activity rose month-over-month in each of the four major U.S. regions. However, contract signings have declined -1.4% Year-over-year.
In a statement prepared for the release of this month’s PHSI, Lawrence Yun, NAR’s chief economist said, “Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later. This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.”
Yun added that “The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years.”
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