After two consecutive months of decline, pending home sales in October increased 0.2 percent to 107.7 from a 107.5 in September, and is 3.9 percent higher than in October 2014, according to the National Association of Realtors Pending Home Sales Index.
Pending home sales have fallen flat because of a limited housing inventory and rising home prices in some markets, said Lawrence Yun, NAR chief economist, in a statement.
“Contract signings in October made the most strides in the Northeast, which hasn’t seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country,” he said. “In the most competitive metro areas—particularly those in the South and West—affordability concerns remain heightened as low inventory continues to drive up prices.”
The PHSI in the Northeast rose 4.5 percent to 93.6 in October. The West reported a 1.7 percent increase in October to 106.2.
The Midwest and South recorded decreases of 1 percent and 1.7 percent, making the PHSI 103.9 and 118.1, respectively.
