Pending-Home Sales Improve in October

Homebuying activity grew in October, with data from the National Association of Realtors showing that pending-home sales increased by 1.9% from the month prior. However, on a year-over-year basis, pending sales fell by 0.4%. Month-over-month pending home sales increased in nearly every region, except for the West, where they declined by 1.5%. Meanwhile, year-over-year pending-home sales increased in the Midwest and South, and decreased in the Northeast and West.

It's unclear whether or not sales will continue to improve in the coming months. NAR’s October Realtors Confidence Index survey shows that just 17% of housing industry professionals believe buyer traffic will increase over the next three months, and that figure is down from 20% in September and from 19% in October 2024.

"The Midwest shined above other regions due to better affordability, while contract signings retreated in the more expensive West region," said NAR Chief Economist Lawrence Yun. "Days on the market typically lengthen from November through February, providing better negotiating power to buyers during the holiday season."

"Job gains in September, following the data blackout, are reassuring and suggest the economy is not slipping into a recession," Yun added. "This may boost confidence in future homebuying."