September marks second straight month of pending home-sales growth!
September marked two straight months of growth in pending home sales, although contract activity was uneven across the country, the National Association of Realtors (NAR) reported.
The NAR’s Pending Home Sales Index, which tracks pending home sales through contract signings, increased 1.5% to 108.7 in September (the index was bench marked at a reading of 100 in 2001). Year-over-year, contract signings were up 3.9%, thanks to mortgage rates lingering near historical lows.
“Even though home prices are rising faster than income, national buying power has increased by 6% because of better interest rates,” said Lawrence Yun, NAR's chief economist. “Furthermore, we’ve seen increased foot traffic as more buyers are evidently eagerly searching to become homeowners.”
The upper tiers of the housing market are faring well, Yun said, even though growth in contract activity — especially for entry-level homes — would be even higher if there was more supply to go around.