A drop in pending home sales for September may be a signal that rising home prices are too much for buyers. CNBC says the number of signed contracts on existing homes dropped 2.2% from August to September, according to stats from the National Association of Realtors. This decline comes after four consecutive months of pending home sale gains. Economists thought pending sales would continue upward in September, but pending sales still remain 20.5% higher annually. The only region to increase in pending sales was the Northeast, most likely due to more New Yorkers fleeing the city.
The Northeast, which is seeing distinct urban flight from New York City amid the coronavirus pandemic, was the only region to post a gain. Sales were up 2% for the month and 27.7% annually.
In the Midwest, pending sales fell 3.2% monthly but were up 18.5% from September 2019.
Pending home sales in the South decreased 3% monthly and increased 19.6% annually. In the West sales fell 2.6% monthly and were up 19.3% from a year ago.