The National Association of Realtors said that the Pending home sales were higher in September following August’s notable dip and are at fifth highest level over the past year.
The Pending Home Sales Index grew 1.5% to 110.0 in September from a slight downward revision of 108.4 in August.
Lawrence Yun, NAR chief economist, says a robust increase in the West and a healthy bump in the South pushed pending sales upward in September. “Buyer demand is holding up impressively well this fall with Realtors® reporting much stronger foot traffic compared to a year ago 1,” he said. “Although depressed inventory levels are keeping home prices elevated in most of the country, steady job gains and growing evidence that wages are finally starting to tick up are encouraging more households to consider buying a home.”
“The one major predicament in the housing market is without a doubt the painfully low levels of housing inventory in much of the country,” added Yun. “It’s leading to home prices outpacing wages, properties selling a lot quicker than a year ago 2 and the home search for many prospective buyers being highly competitive and drawn out because of a shortage of listings at affordable prices.”