Pending Home Sales Rise 7.4% in September, Reaching Highest Level Since March

Published on

October 30, 2024

Highlights:

  • September pending home sales increased 7.4%, the highest since March.
  • All major U.S. regions saw monthly gains, with the West leading the rise.
  • Compared to last year, contract signings grew in the Northeast and West and remained steady in the Midwest and South.

The National Association of REALTORS® (NAR) reported strong pending home sales for September, with notable monthly gains across all regions. The Pending Home Sales Index (PHSI), which tracks signed contracts as an early indicator of home sales, rose to 75.8—a 7.4% jump from August. This represents a year-over-year growth of 2.6%. A PHSI score of 100 is equivalent to contract activity in 2001.

“Buyers responded to favorable mortgage rates and more inventory choices, increasing contract signings nationwide,” said NAR Chief Economist Lawrence Yun. “If job growth continues, inventory expands, and mortgage rates stay steady, further gains are likely.”

Outlook for the Housing Market

Yun expects existing-home sales to increase, reaching 4.47 million in 2025 and over 5 million in 2026, following slower market activity in 2023 and 2024. Home prices should grow more moderately, aligning with inflation as additional inventory enters the market. Yun also predicts the median home price will reach $410,700 in 2025 and $420,000 in 2026, with mortgage rates averaging 5.9% in 2025 and slightly increasing to 6.1% in 2026.

Regional Sales Overview

  • Northeast: Sales rose 6.5% to 65.6, a 3.3% increase over last year.
  • Midwest: Increased 7.1% to 75.0, matching last year’s figures.
  • South: Up 6.7% to 89.0, with no change from last year.
  • West: Strongest regional gain, up 9.8% to 64.0, a 12.3% increase year-over-year.