US Pending Home Sales Increase 7.4% in September

On Wednesday, the National Association of Realtors® (NAR) reported its Pending Homes Sales Index (PHSI) for September. The PHSI—based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops—increased 7.4% month-over-month to a reading of 75.8 in September. This is the highest level since March 2024, when it reached a reading of 78.3. An index of 100 is equal to the level of contract activity in 2001.

Year-over-year, pending homes sales were up 2.6%.

In September, all four major regions experienced month-over-month gains in transactions. Year-over-year, the Northeast and West registered increases while sales remained steady in the Midwest and South.

The regional breakdown is as follows:

• The Northeast PHSI increased 6.5% from last month to a reading of 65.6, up 3.3% from September 2023.
• The Midwest PHSI surged 7.1% to a reading of 75.0 in September, identical to the previous year.
• The South PHSI improved 6.7% to a reading of 89.0 in September, unchanged from a year ago.
• The West PHSI ballooned by 9.8% from the prior month to a reading of 64.0, up 12.3% from September 2023.