Pending home sales rebound in October: Massachusetts Homebuyers homeowners

Pending-home sales surged 7.5 percent on a monthly basis in October after falling 2.3 percent in September, the National Association of REALTORS® reported, citing its Pending Home Sales Index. Year over year, contract signings were down 1.4 percent, according to a press release. “Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later,” NAR chief economist Lawrence Yun said, noting that October’s strong numbers indicate total existing-home sales in 2021 will exceed six million, representing the best performance in 15 years.

“This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.” All four geographic regions saw increases in contract activity, led by the Midwest, which clocked an 11.8 percent rise from September, and the South, where signed contracts rose 8 percent. Pending transactions climbed 6.9 percent in the Northeast and 2.1 percent in the West. Compared to last year, the Northeast had the largest drop in the PHSI, with a 10 percent decrease, followed by the West, with a 6.2 percent slide.

The Midwest and South saw increases of 5.1 percent and 0.6 percent, respectively. “Even as rates increased in October, the housing market remained a competitive sellers’ market,” First American Deputy Chief Economist Odeta Kushi said. “Demand remains high against a very limited number of homes for sale. A high velocity of sales, as indicated by lower days on market, explains a housing market characterized by higher sales and lower inventory.”

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