Pending homes sales index falls, though purchasing activity and buyer demand remain up

By Madison Parry

An index on existing home sales from the National Association of Realtors shows a 2.2 percent decline in pending home sales from August to September. Despite the drop, pending sales activity was up 20.5 percent from last year with strong purchase activity and buyer demand.

The National Association of Realtors Pending Home Sales Index revealed a 2.2 percent decline from August to September.

The index is an indicator for existing home sales and displays a seasonally adjusted measure of the number of homes that went under contract in a month.

September’s decline was the first monthly drop since April 2020, though despite the noted decrease, both home purchasing activity and buyer demand continued to show steady activity.

Pending sales activity in September increased by 20.5 percent compared to last September, according to a Zillow report.

Nonetheless, a decline in homes going under contract indicates that low levels of for-sale inventory are beginning to have a stronger effect on people’s ability to buy a home.

According to Zillow’s data, there are 37.2% fewer homes for sale in the U.S. compared to the same time last year.

The National Association of Realtors measure of monthly supply – the amount of time it would take to sell through all currently listed for-sale inventory – was set at 2.7 months. This is the lowest ever recorded in its monthly series.