The National
Association of Realtors (NAR) announced on Wednesday its seasonally adjusted
pending home sales index (PHSI) surged by 7.4 per cent m-o-m to 75.8 in September
(the highest level since March (78.3)), following an unrevised 0.6 per cent m-o-m rise in August. This
marked the strongest increase in pending home sales since January 2023 (+8.1
per cent m-o-m).
Economists had forecast
pending home sales to jump 1.1 per cent m-o-m in September.
On a y-o-y
basis, the index advanced 2.6 per cent after an unrevised 3.0 per cent drop in August. This represented the first annual gain in six months.
According to
the report, all four major U.S. regions - the West (+9.8 per cent m-o-m), Midwest (+7.1 per cent m-o-m), South
(+6.7 per cent m-o-m) and Northeast (+6.5 per cent m-o-m) - posted monthly increases
in pending home sales operations and two of them - the West (+12.3 per cent) and
Northeast (+3.3 per cent) - registered gains on a y-o-y basis.
Commenting on the latest report, Lawrence Yun, NAR’s chief economist,
noted contract signings rose across all regions of the country as buyers took
advantage of the combination of lower mortgage rates in late summer and more
inventory choices. “Further gains are expected if the economy continues to add
jobs, inventory levels grow, and mortgage rates hold steady,” he added.