Annual Advance
The Realtors’ report showed purchases rose 1.1 percent from September 2012 on an unadjusted basis, the smallest advance in more than two years.
The pending sales index was 101.6 on a seasonally-adjusted basis, the weakest since December. A reading of 100 coincides with the average level of contract activity in 2001 and “historically healthy” home-buying traffic, according to the NAR.
“This tells us to expect lower home sales for the fourth quarter, with a flat trend going into 2014,” NAR Chief Economist Lawrence Yun said in a statement. “Even so, ongoing inventory shortages will continue to lift home prices, though at a slower single-digit growth rate next year.”
All four regions showed a decrease from a month earlier, led by a 9.6 percent drop in the Northeast and a 9 percent decline in the West.
Economists consider pending home sales a leading indicator because they track purchase contracts. Existing home sales are tabulated when a contract closes, usually a month or two later.
September Sales
Last week, the Realtors’ group said existing home sales fell in September for the first time in three months as higher prices and mortgage rates curbed demand. Purchases dropped 1.9 percent to a 5.29 million annual rate from a revised 5.39 million pace in August that was the strongest since 2009.
The median price of an existing home increased to $199,200 from $178,300 in September 2012, the group reported last week.
The NAR forecasts sales of existing homes to be little changed in 2014 at 5.18 million compared with 5.16 million this year.