Pending-Home Sales Remain Low in September

Sales activity was largely muted in September, with pending-home sales unchanged month-over-month and down by 0.9% year-over-year, according to the National Association of Realtors (NAR). However, NAR’s September Confidence Index Survey shows that 20% of real estate agents believe buyer traffic will improve over the next three months. While this figure represents just a small fraction of those surveyed, it is up from the 19% recorded last September.

"Contract signings matched the second-strongest pace of the year. However, signings have yet to fully reach the level needed for a healthy market despite mortgage rates reaching a one-year low," said NAR Chief Economist Lawrence Yun. "A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market."

"Inventory has climbed to a five-year high, giving home buyers more options and room for price negotiation," Yun added. "Looking ahead, mortgage rates are trending toward three-year lows, which should further improve affordability, though the government shutdown could temporarily slow home sales activity."