The National Association of Relators: Pending Home Sales CONTINUE to Slump WASHINGTON (October 28, 2013) - Pending home sales declined for the fourth consecutive month in September, as higher mortgage interest rates and higher home prices curbed buying power, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 5.6 percent to 101.6 in September from a downwardly revised 107.6 in August, and is 1.2 percent below September 2012 when it was 102.8. The index is at the lowest level since December 2012 when it was 101.3; the data reflect contracts but not closings. Lawrence Yun, NAR chief economist, said concerns over the government shutdown also played a role. Declining housing affordability conditions are likely responsible for the bulk of reduced contract activity, he said. In addition, government and contract workers were on the sidelines with growing insecurity over lawmakers inability to agree on a budget. A broader hit on consumer confidence from general uncertainty also curbs major expenditures such as home purchases. Yun notes this is the first time in 29 months that pending home sales werent above year-ago levels. The PHSI in the Northeast dropped 9.6 percent to 76.7 in September, and is 6.4 percent below a year ago. In the Midwest the index fell 8.3 percent to 102.3 in September, but is 5.7 percent higher than September 2012. Pending home sales in the South slipped 0.4 percent to an index of 116.2 in September, but are 2.0 percent above a year ago. The index in the West dropped 9.0 percent in September to 97.3, and is 9.8 percent lower than September 2012.
Posted on: Mon, 18 Nov 2013 19:35:01 +0000