H
ome sales continued their upward trend in October, marking the third consecutive month of growth according to recent data from the National Association of REALTORS (NAR). Buyers are showing resilience against higher mortgage rates, with contract signings rising 5.4% compared to last year.

    Real estate professionals should be prepared for an increase in home sale contracts as buyers gradually return to the market. NAR's Pending Home Sales Index rose 2% in October from September, with all four major regions of the U.S. posting gains. The Northeast saw the largest monthly jump at nearly 5%, followed by the Midwest with a 4% uptick.

    The increase in pending home sales is attributed to continuous job additions and more housing inventory bringing consumers back into the market. Housing inventory is up 19% compared to last year, providing prospective buyers with greater choices. Buyer traffic is also 7% higher than last year, as measured by SentriLock's lockbox opens.

    While mortgage rates remain elevated, buyers may be growing accustomed to rates in the 6% range. NAR Chief Economist Lawrence Yun believes that consumers are getting used to the higher rates and may accept them as the new normal. With more housing inventory and job gains on the horizon, home sales are expected to continue their upward trend.