It wasn’t a big increase, but monthly pending sales of U.S. residential properties inched up thanks to improvements in the Northeast and West.
As of October, the Pending Home Sales Index was 107.7. The index is a forward-looking indicator that is based on contract signings.
That worked out to an 0.2 percent increase over the previous month — when the index had fallen to its lowest level since January of this year.
The index was reported Monday by the National Association of Realtors.
Last month’s escalation was the first in three months.
NAR Chief Economist Lawrence Yun explained in the report that the relatively flat month-over-month activity reflects few available homes for sale and prices that are rising too rapidly in some markets.
“Unless sizable supply gains occur for new and existing homes, prices and rents will continue to exceed wages into next year and hamstring a large pool of potential buyers trying to buy a home,” Yun stated.
Compared to October 2014,
the index was up 3.9 percent. It was the 14th consecutive year-over-year increase.
The national gain was helped by a 4.5 percent surge from September in the Northeast, where the index landed at 93.6.
Also aiding the U.S. improvement from a month earlier was the West, where the index rose 1.7 percent to 106.2 as of October.
In the Midwest, pending home sales fell 1.0 percent from September, leaving the index there at 103.9.
A 1.7 percent decline left the South’s index at 118.1 in October.
