Pending sales

National Association of Realtors® Pending Home Sales Index
Seasonally Adjusted Annual Rate, 2003-2006

The Pending Home Sales Index, based on contracts signed in September, slipped 1.1 percent to a level of 109.1, following a 4.5 percent gain in August, but remains 13.6 percent below September 2005.

David Lereah, NAR’s chief economist, said the index shows home sales will not be moving much in one direction or another. “The present level of home sales is relatively high in historic terms, and we can expect generally minor movements around this level. We don’t expect to see any changes of note until early next year when we’re likely to see a modest lift to home sales,” he said. “The market currently is a little lower than expected as buyers try to time their entry. In the meantime, there’s some buildup in demand that will move when consumers realize that conditions are optimal for them.”

National Association of Realtors®, Pending Home Sales Show Leveling Trend, 1. Nov. 2006