W
ASHINGTON (September 26, 2024) – The National Association of REALTORS reported that pending home sales in August increased by 0.6% from July. This modest gain was driven by growth in the Midwest, South, and West regions, while the Northeast saw a decline. Year-over-year, the West experienced an uptick, but the Northeast, Midwest, and South suffered losses.
The Pending Home Sales Index (PHSI) rose to 70.6 in August, indicating a forward-looking indicator of home sales based on contract signings. However, year-over-year pending transactions were down 3.0%. NAR Chief Economist Lawrence Yun attributed this slight upward turn to improved housing affordability due to declining mortgage rates.
Regional Breakdown:
* The Northeast PHSI dropped 4.6% from last month to 61.6 and declined 2.2% from August 2023.
* The Midwest index increased by 3.2% to 70.0 in August, down 3.6% from one year ago.
* The South PHSI grew 0.1% to 83.6 in August, receding 5.3% from the prior year.
* The West index rose 3.2% in August to 58.0, up 2.7% from August 2023.
Yun noted that home sales and prices have performed relatively better in New England compared to other regions. He also stated that contract signings increased in both affordable and expensive regions due to falling mortgage rates. Yun added that the anticipation of short-term interest rate cuts has pushed long-term mortgage rates down, resulting in significant savings for homeowners.
The National Association of REALTORS is America's largest trade association, representing 1.5 million members involved in residential and commercial real estate industries. The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. An index of 100 represents the average level of contract activity during 2001.
The next Pending Home Sales Index will be released October 30, while Existing-Home Sales for September will be released October 23.
