Pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010 when it stood at 85.5. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this is indicates more buyers are taking advantage of the excellent affordability conditions,” he said.
The PHSI in the Northeast surged 17.7 percent to 71.3 in October and is 3.4 percent above October 2010. In the Midwest the index jumped 24.1 percent to 88.7 in October and remains 13.2 percent above a year ago. Pending home sales in the South rose 8.6 percent in October to an index of 99.5 and are 9.7 percent higher than October 2010. In the West the index slipped 0.3 percent to 105.5 in October but is 8.1 percent above a year ago.
Related Stories
Business
November Data: Custom Architects Weigh In, New Construction Trends, Contractor Confidence, and Material Price Changes
We've collected highlights from a number of data reports published throughout the industry in November
Codes & Standards
OSHA's Preliminary List of 2023's Most Frequently Cited Standards in Violations
Fall-related violations continue to plague the construction industry despite ample free education and resources
Case Studies
New Pandemic Task Force to Enhance Building Safety
A soon-to-be-appointed Pandemic Task Force seeks to strengthen the built environment in the face of disease-related threats
Data & Research
October's Data From Around the Industry
In October, we saw reports on remodeling spending, individual septic system installations, and the widespread use of rate buydowns to sell new homes
Custom Builder
Take Part in Our Annual Housing Forecast
The best way to understand the residential construction industry is to speak with residential construction professionals. And with that being said, we humbly ask for your input in this year's survey
Custom Builder
How the Zero Energy Ready Home Update Emphasizes Resilience and Decarbonization
ZERH Version 2, released in December of 2022, will boost the efficiency and performance of single-family homes, preparing them for the increasingly oppressive weather
Business
How to Attract and Retain a Multi-Generational Workforce
Attracting skilled laborers remains a top priority for the construction industry, but according to Steve Bench, founder of Generational Consulting, the biggest roadblocks to recruitment and retainment are generational differences
Construction
Small-Duct, High-Velocity HVAC: What It Is and Why It Pairs Well With Modular Homes
Modular home manufacturers, builders, and owners now have many choices when it comes to indoor climate systems, but small-duct, high-velocity (SDHV) systems may be the perfect fit for these types of homes
Codes & Standards
An Introduction to the Zero Energy Ready Home Program
Late in 2022, the U.S. Department of Energy's Zero Energy Ready Home program announced the rollout of ZERH Single Family Version 2
Construction
Guest Column: Residential Construction Trends to Follow in 2023
PERC shares homeowner trends to keep on your radar in the New Year.