While most regions posted minor gains, activity in the South was held back by Hurricane Irma
Pending home sales remained steady in September from August as demand continues to exceed supply is most markets, according to the Pending Home Sales Index (PHSI) released by the National Association of Realtors (NAR).
The PHSI, which is based on contract signings, was at 106 in September, unchanged from the downwardly revised August level. On an annual basis, the PHSI declined 3.5% below a year ago, with activity declining nationally and in all major regions.
According to NAR Chief Economist Lawrence Yun, home shoppers continue to face a challenging market in which demand exceeds supply. Yun said the imbalance, which has pushed prices higher, has essentially eliminated savings buyers would have realized from the decrease in mortgage rates earlier in 2017.
Additionally, Yun said that although most regions recorded minor increases in contract signings in September, activity continues to be behind the 2016 pace because new listing cannot keep up with sales.
The PHSI in the Northeast regions was 94.5 in September, up 1.2% from August but 2.4% below the year-ago period. The Midwest PHSI rose 1.4% to 102.9, but is lower 2.5% on an annual basis.
The South had a PHSI of 115.9 during the month, a 2.3% decline from August and a 5% drop from the year-ago level. Pending home sales in the West grew 1.9% to 102.7 in September, but is 2.9% below the same period last year.
“Hurricane Irma's direct hit on Florida weighed on activity in the South, but similar to how Houston has rebounded after Hurricane Harvey, Florida's strong job and population growth should guide sales back to their pre-storm pace fairly quickly,” Yun said.
Related stories:
Pending home sales dip in August on limited listings, rising prices
Pending home sales slip but not in the west
The PHSI, which is based on contract signings, was at 106 in September, unchanged from the downwardly revised August level. On an annual basis, the PHSI declined 3.5% below a year ago, with activity declining nationally and in all major regions.
According to NAR Chief Economist Lawrence Yun, home shoppers continue to face a challenging market in which demand exceeds supply. Yun said the imbalance, which has pushed prices higher, has essentially eliminated savings buyers would have realized from the decrease in mortgage rates earlier in 2017.
Additionally, Yun said that although most regions recorded minor increases in contract signings in September, activity continues to be behind the 2016 pace because new listing cannot keep up with sales.
The PHSI in the Northeast regions was 94.5 in September, up 1.2% from August but 2.4% below the year-ago period. The Midwest PHSI rose 1.4% to 102.9, but is lower 2.5% on an annual basis.
The South had a PHSI of 115.9 during the month, a 2.3% decline from August and a 5% drop from the year-ago level. Pending home sales in the West grew 1.9% to 102.7 in September, but is 2.9% below the same period last year.
“Hurricane Irma's direct hit on Florida weighed on activity in the South, but similar to how Houston has rebounded after Hurricane Harvey, Florida's strong job and population growth should guide sales back to their pre-storm pace fairly quickly,” Yun said.
Related stories:
Pending home sales dip in August on limited listings, rising prices
Pending home sales slip but not in the west
