H
ome buyers are stepping back into the market this fall as affordability improves. The National Association of REALTORS® (NAR) reports that its Pending Home Sales Index, which tracks contracts signed, climbed roughly 2 % nationwide in October. Although this marks a rise, pending sales are still 0.4 % below the same period last year, indicating lingering caution among potential buyers.

    The Midwest leads the nation in new contract growth, with a 5.3 % increase in pending sales—outpacing every other region—thanks to more attainable price points. “Midwest affordability shines while the West sees a retreat in contract signings,” says NAR chief economist Lawrence Yun. Existing‑home sales mirrored this trend, also up 5.3 % from September. Median prices in October were $319,500 in the Midwest, compared with $362,300 in the South, $503,700 in the Northeast, and $628,500 in the West. Yun notes that first‑time buyers fare better in the Midwest and South due to ample inventory, while the Northeast struggles with supply shortages and the West’s high prices keep many out of the market.

    Nationwide buyer activity is rising as mortgage rates fall. The 30‑year fixed rate averaged 6.26 % in the latest week, down from about 7 % at the start of the year. Lower rates, combined with price adjustments in some markets, are encouraging buyers to re‑enter. “Days on market typically lengthen from November through February, giving buyers more negotiating power during the holiday season,” Yun explains. Existing‑home sales rose 1.2 % in October and are 1.7 % higher than a year earlier. Mortgage applications for purchases jumped 26 % year‑over‑year, according to the Mortgage Bankers Association, reflecting strong demand. Job gains in September, following a data blackout caused by a government shutdown, suggest the economy is holding steady, boosting confidence in future home buying.

    Looking ahead, Yun projects a 14 % increase in existing‑home sales in 2026 as mortgage rates drift toward an average of 6 %, creating better affordability for long‑waiting buyers.

    **Pending Home Sales Index – October 2024**

    - Northeast: +2.3 % from September; –1 % from October 2024

    - Midwest: +5.3 % from September; +0.9 % from October 2024

    - South: +1.4 % from September; +2 % from October 2024

    - West: –1.5 % from September; –7 % from October 2024