Pending home sales rose 0.2% in October, missing forecasts.
Economists had estimated, according to Bloomberg, that pending home sales rose 1% month-on-month. In the prior month, they fell 2.3%.
The National Association of Realtors said that gains in the forward-looking indicator of contract signings were seen in the Northeast and West. Declines in the Midwest and South softened these gains.
“Contract signings in October made the most strides in the Northeast, which hasn’t seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country,” said NAR chief economist Lawrence Yun in the release. “In the most competitive metro areas — particularly those in the South and West — affordability concerns remain heightened as low inventory continues to drive up prices.”
As a forward-looking indicator, pending home sales point to another small drop in existing home sales next month, noted Pantheon Macroeconomics’ Ian Shepherdson to clients with this chart.