W
ASHINGTON (October 30, 2024) – The National Association of REALTORS® reports that pending home sales rose in September, with all four major regions experiencing month-over-month gains in transactions. Year-over-year, the Northeast and West registered increases while sales remained steady in the Midwest and South.

    The Pending Home Sales Index (PHSI) jumped 7.4% to 75.8 in September, its highest level since March. This marks a year-over-year increase of 2.6%. According to NAR Chief Economist Lawrence Yun, buyers took advantage of lower mortgage rates and more inventory choices in late summer.

    Yun forecasts slower home price appreciation and corresponding increases in sales over the next two years. Existing-home sales are expected to rise to 4.47 million in 2025 and over 5 million in 2026. He predicts a slower rate of growth in home prices, roughly in line with the consumer price index, due to additional supply reaching the market.

    The median existing-home price is forecasted to reach $410,700 in 2025 and $420,000 in 2026. The annual 30-year fixed mortgage rate will slide to 5.9% in 2025 but then move higher to 6.1% in 2026.

    Regional pending home sales data shows the Northeast PHSI expanded 6.5% from last month to 65.6, up 3.3% from September 2023. The Midwest index surged 7.1% to 75.0 in September, identical to the previous year. The South PHSI improved 6.7% to 89.0 in September, unchanged from a year ago. The West index ballooned by 9.8% from the prior month to 64.0, up 12.3% from September 2023.

    The National Association of REALTORS® is America's largest trade association, representing 1.5 million members involved in all aspects of the 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.