Sales may have been on the up and up last month, but new numbers out from the National Association of Realtors find that pending sales took a bit of a dip in September.
According to the Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, pending sales decreased 2.3 percent to 116.7 in September. Year-over-year, signings decreased 8 percent.
An index of 100 is equal to the level of contract activity in 2001.
Here out west, pending sales were down 1.4 percent in September—down 7.2 percent from one year ago.
“Contract transactions slowed a bit in September and are showing signs of a calmer home price trend, as the market is running comfortably ahead of pre-pandemic activity,” said Lawrence Yun, NAR’s chief economist. “It’s worth noting that there will be less inventory until the end of the year compared to the summer months, which happens nearly every year.
“Some potential buyers have momentarily paused their home search with intentions to resume in 2022.”
As we near the end of the year, updated 2021 wrap-up predictions are hitting the news. NAR anticipates that by year’s end home sales will be up 6.4 percent for 2021. Heading into the new year, NAR projects sales to then decline by 1.7 percent in 2022, with 2.8 percent home price growth in 2022.
That, of course, follows a price gain of 14.7 percent in 2021.