Pending-home sales rose in October and remain above year-ago levels, according to new data from the National Association of Realtors (NAR).
NAR's Pending Home Sales Index (PHSI) surged 10.4% to 93.3 in October from 84.5 in September, and it is 9.2% above October 2010, when it stood at 85.5. The data reflects contracts but not closings.
The PHSI in the Northeast surged 17.7% to 71.3 in October and is 3.4% above October 2010. In the Midwest, the index jumped 24.1% to 88.7 and remains 13.2% above a year ago. Pending-home sales in the South rose 8.6% to an index of 99.5 and are 9.7% higher than October 2010. In the West, the index slipped 0.3% to 105.5, but is 8.1% above a year ago.
‘Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows, and there is a pent-up demand from buyers who normally would have entered the market in recent years,’ says Lawrence Yun, NAR chief economist. ‘We hope this indicates more buyers are taking advantage of the excellent affordability conditions.’