Home Sales Stagnate in September as Buyers Await Changes
Understanding the Status of Pending Home Sales
Pending home sales in September have remained unchanged from the previous month while experiencing a slight year-over-year decline of 0.9%. This information was published by the National Association of REALTORS, reflecting the current dynamics in the real estate market. This report serves as a crucial indicator for homebuyers, sellers, and real estate agents, providing insights into transactions currently under contract.
Regional Trends in Home Sales
Across the nation, there have been varying trends in pending home sales based on geography. While the Northeast and South reported month-over-month increases, the Midwest and West experienced declines. This regional variation indicates differing market conditions that may affect strategies for potential buyers and sellers.
Insights from REALTORS Confidence Index
The REALTORS Confidence Index indicates a mixed outlook among NAR members. Approximately 20% of these professionals foresee an uptick in buyer traffic over the next three months, a minor increase from the previous month. Conversely, about 19% of members predict more seller traffic, indicating a steady market environment compared to last year.
Market Conditions and Economic Indicators
According to Lawrence Yun, Chief Economist at NAR, pending contract signings are at one of the year's strongest paces, yet they still fall short of what's necessary for a thriving market. Factors contributing to this environment include historically low mortgage rates, but a potentially softening job market may dampen buyer enthusiasm.
The housing inventory has risen to its highest level in five years, granting home buyers more flexibility and negotiating power. As mortgage rates are expected to trend towards three-year lows, there may be considerable improvements in affordability, although external factors such as government operations could temporarily affect sales.
Current Pending Home Sales Overview
September 2025 Pending Home Sales
- No change month over month
- 0.9% decline year over year
Regional Overview of Pending Home Sales in September 2025
Northeast
- 3.1% increase month over month
- 0.5% increase year over year
Midwest
- 3.4% decrease month over month
- 1.5% decrease year over year
South
- 1.1% increase month over month
- 0.9% increase year over year
West
- 0.2% decrease month over month
- 5.3% decrease year over year
What the Pending Home Sales Index Represents
The Pending Home Sales Index (PHSI) serves as an essential forward-looking indicator of home sales trends, derived from home contract signings. It provides a snapshot of the market's health, with an index value of 100 representing contract activity levels from the year 2001, which is considered the baseline for measuring movement in the housing market.
It is vital to understand that the timing for moving from a pending contract to a finalized sale can vary widely. Challenges such as mortgage financing issues, home inspections, and appraisals can influence how quickly these transactions close. A typical sample of this data includes around 40% of the multiple listing service, ensuring a broad representation of market activity.
The performance of pending contracts may outline forthcoming sales closings, offering useful insights for both buyers and sellers navigating the complex real estate landscape.
Frequently Asked Questions
What does the Pending Home Sales Index indicate?
The Pending Home Sales Index is a leading indicator of housing market performance, based on the number of pending sales contracts.
How did regional markets perform in September?
The Northeast and South saw increases in pending sales, while the Midwest and West experienced declines.
What trends should buyers be aware of?
Buyers should note the increase in inventory and the possibility of lower mortgage rates, which can enhance affordability.
What factors could affect home sales?
The economic climate, including job market stability and government actions, can influence home sales activity.
What does a 0.9% decline year over year mean?
This indicates that overall, there has been a slight decrease in the number of homes pending sale compared to the same period last year.
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