T
he National Association of Realtors' September report showed a significant jump in pending sales, with a 7.4% increase from August and a 2.6% year-over-year rise in contract signings. NAR Chief Economist Lawrence Yun attributed this growth to lower mortgage rates and increased inventory choices.

    Yun expects further gains if the economy continues to add jobs, inventory levels grow, and mortgage rates remain steady. Pending sales rose across regions, with the South experiencing a 6.7% increase. Active listings also saw an uptick nationwide, with the South leading the way at 34%.

    In Huntsville, pending sales for single-family units increased by 6.9%, while townhouse units surged 38.5%. New listings for single-family units rose 2.4%, but townhouse units declined 59.3%. Inventory growth continued in the Huntsville/Madison County market, with a 28.4% increase in single-family unit inventory and a 136.7% jump in townhouse units.

    Yun predicts that as additional supply reaches the market, home prices will grow at a slower rate over the next two years, roughly in line with the consumer price index. However, mortgage rates have begun to rise following the Federal Reserve's surprise interest rate cut in September. As of October 30, the national average has climbed to 6.73%, its highest level since July.