US pending home sales flat in September

US pending home sales were flat in September, according to figures from the National Association of Realtors.

The NAR’s monthly index came in at 106.0 last month, unchanged from a downwardly-revised August figure and versus expectations of a 0.2% increase. The index is now at its lowest level since January 2015 and 3.5% below a year ago, having fallen on an annual basis in five of the past six months.

NAR chief economist Lawrence Yun said the quest to buy a home this fall continues to be a challenging endeavour for many home shoppers.

“Demand exceeds supply in most markets, which is keeping price growth high and essentially eliminating any savings buyers would realize from the decline in mortgage rates from earlier this year. While most of the country, except for the South, did see minor gains in contract signings last month, activity is falling further behind last year's pace because new listings aren't keeping up with what's being sold.”

Yun added that Hurricane Irma's direct hit on Florida weighed on activity in the South, but similar to how Houston has rebounded after Hurricane Harvey, Florida's strong job and population growth should guide sales back to their pre-storm pace fairly quickly.

The pending home sales index in the Northeast rose 1.2% to 94.5 in September, but is still 2.4% below a year ago, while in the Midwest, the index rose 1.4% to 102.9, but remains 2.5% lower than September 2016.

Pending home sales in the South fell 2.3% to 115.9 in September and are now 5% lower than last September, while in the West, sales rose by 1.9% 102.7.