Little Change to Pending Home Sales

According to the Pending Home Sales Index (PHSI), an indicator based on contract signings, there was just 0.3% upward movement for the month.

Pending home sales are holding higher compared to last years levels but remain mostly unchanged in September.

Lawrence Yun, NAR chief economist, said pending home sales continue to hold a higher ground. "Home contract activity remains at an elevated level in contrast with recent years, but currently appears to be bouncing around in a narrow range," Yun said. "This means only minor movement is likely in near-term existing-home sales, but with positive underlying market fundamentals they should continue on an uptrend in 2013."

The Midwest was the only area to show a decline, falling 5.8% for the month. It remains 19.3% above last year's contract.

The West seen the largest increase which rose 4.3% in September to 106.9 on the PHSI followed by the Northeast at 1.4% and the South at 1.0%. All regions are seeing pending sales rates higher than a year ago, although the West is only 0.8% above September 2011 levels.

According to the NAR (National Association of Realtors) pending home sales have risen for 17 consecutive months on a year-over-year basis.

Existing-home sales -- those that have seen contracts through completion -- are up 9% and are projected to rise another 9% next year to 5.1 million units.

According to HUD and the U.S. Census Bureau, new home sales also posted a gain for the month of September, rising 5.7% to a seasonally adjusted annual rate of 389,000 units.

The NAHB reports, "Three out of four regions registered substantial gains in new-home sales this September, including the Northeast's 16.7%  increase, the South's 16.8% increase and the West's 3.9% increase. The Midwest was the exception to the rule, with a 37.3% decline."

Source: Realty Times