Pending homes sales dipped in September

Decline in contract activity suggests sales will fall in coming months

National /
Oct.October 29, 2020 11:35 AM
The decline in contract activity may signal a drop in sales in the coming months (iStock)

The decline in contract activity may signal a drop in sales in the coming months (iStock)

After four months of growth, the number of U.S. homes going into contract declined in September, indicating a slowdown in homebuyer demand.

A National Association of Realtors index of pending home sales dropped 2.2 percent last month, compared to August.

NAR’s index tracks signed contract activity for single-family homes, condo and co-op units, and is seen as an indicator of future sales of existing homes.

Though September’s numbers represented a month-over-month dip, the index was up a substantial 20.5 percent from September 2019.

The only region of the country that bucked the trend was the Northeast, where pending home sales rose 2 percent last month from August. All regions posted year-over-year gains.

Lawrence Yun, NAR’s chief economist, said that the housing market was still on track to end 2020 with more sales than in 2019.

“With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future,” he said in a statement.

Yun also said he expects a “second-order demand” to emerge among homeowners who may not have considered moving during the pandemic but want to trade up to larger homes.

Existing homes sales hit a record high with 6.5 million sold last month, although new home sales were down 3.5 percent in August. For both newly built and existing homes, prices have continued to climb as inventory levels remain at unprecedented low levels.





    Related Articles

    arrow_forward_ios
    Former J. Crew CEO Mickey Drexler and 760 N Walnut Ave, Ketchum (Getty; Realtor)

    Former J. Crew CEO Mickey Drexler sells Idaho estate

    Former J. Crew CEO Mickey Drexler sells Idaho estate
    Singapore (iStock)

    Singapore luxury market rebounds despite fewer foreign buyers

    Singapore luxury market rebounds despite fewer foreign buyers
    The total supply of single-family homes declined 40 percent to 3.3 months in October (iStock)

    Single-family home sales dip in October, but up 41% from last year

    Single-family home sales dip in October, but up 41% from last year
    (iStock)

    Mortgage requests surge ahead of Thanksgiving

    Mortgage requests surge ahead of Thanksgiving
    Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Photos via Foster + Partners and Getty)

    Vanke seeks to remove RFR from Midtown condo project

    Vanke seeks to remove RFR from Midtown condo project
    Hippo founders Assaf Wand and Eyal Navon (LinkedIn)

    Home insurance startup Hippo raises $350M

    Home insurance startup Hippo raises $350M
    Prices increased 6.6 percent year-over-year in September (iStock)

    US home prices surged 6.6% in September

    US home prices surged 6.6% in September
    From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

    These developers could benefit the most from Soho’s rezoning

    These developers could benefit the most from Soho’s rezoning
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...