Pending Home Sales Surge 1.9% in October, Mixed Regional Trends
UPDATE: Pending home sales have surged by 1.9% in October 2023, marking a significant shift from previous trends, according to the latest report from the National Association of REALTORS®. However, this increase is tempered by a 0.4% decline year over year, reflecting a complex landscape for buyers and sellers alike.
Regionally, the dynamics are varied. While pending sales have decreased in the West, they have risen in the Midwest, Northeast, and South. The Midwest stands out with notable growth, attributed to better affordability. NAR Chief Economist Lawrence Yun emphasized that the West region is experiencing a downturn in contract signings due to its higher price points.
“Days on the market typically lengthen from November through February, providing better negotiating power to buyers during the holiday season,” Yun stated. This seasonal shift may encourage potential homebuyers to act before the year ends, especially as October’s Realtors Confidence Index survey revealed that 17% of Realtors anticipate an increase in buyer traffic over the next three months. This is a slight decline from 20% in September and 19% a year ago.
In terms of seller dynamics, 16% expect an increase in seller traffic, down from 19% in September and 19% in October 2024. This indicates a tightening market that could lead to more competition among potential buyers.
Yun added that recent job gains observed in September, following a data blackout, are reassuring and suggest that the economy is not slipping into a recession. “This may boost confidence in future homebuying,” he noted, highlighting the potential for improved market conditions.
As this data unfolds, the real estate market’s immediate future remains uncertain but cautiously optimistic. Buyers and sellers are urged to keep a close eye on these trends as the holiday season approaches, which could significantly affect their negotiating power and market strategies.
Stay tuned for further updates on this developing story as we monitor the real estate market’s movements and the implications for homebuyers and sellers alike.
