Pending home sales dipped in October, but sales were still above year-over-year levels for the second straight month, according to the National Association of Realtors.
The Pending Home Sales Index, which forecasts the market based on contract signings, decreased 1.1 percent to 104.1 in October from September's 105.3. The Index was still above where it was in October 2013—101.9, 2.2 percent lower than the current rate.
October was the sixth month in a row where the Index was above 100—considered an average level of contract activity.
Buyers are entering the home market this fall due to low interest rates, the increase in homes for sale and less competition from investors paying in cash, said Lawrence Yun, NAR's chief economist, in a statement.
Lagging wage growth and tight credit conditions are keeping demand from growing more robust, he said.
The median existing-home price in October was $208,300, or 5.5 percent above October 2013.
