A modest up tick in the volume of contracts written on pre-owned houses put the level of pending home sales at the highest level in three months.
On a seasonally adjusted basis, the Pending Home Sales Index was 110.0 in October. It was the highest level since July, when the index was 111.2.
Pending home sales inched up 0.1 percent versus the previous month. Compared to one year previous, the index has increased by 1.8 percent.
The index,
a forward-looking indicator based on contract signings, was reported Wednesday by the National Association of Realtors.
An index of 100
is equal to the average level of contract activity during 2001, when the volume of existing home sales was between 5.0 million and 5.5 million — a level considered normal for the U.S. population.
“Despite limited listings and steadfast price growth that’s now carried into the fall, buyer demand has remained strong because of the consistently reliable job creation in a majority of metro areas,” NAR Chief Economist Lawrence Yun stated in the report.
Pending home sales were up 1.6 percent from September in the Midwest, putting the index there at 106. An 0.7 percent rise left last month’s index at 108.3 in the West. The Northeast’s index saw an 0.4 percent month-over-month increase to 96.9.
The South was the only region to suffer a decline from September — 1.3 percent to an index of 120.1.
