Although pending homes sales only recorded a meager increase in September, the index is officially above year-over-year levels for the first time in 11 months, the most recent report from the National Association of Realtors said.
The Pending Home Sales Index grew 0.3% to 105.0 in September from 104.7 in August, and is now 1% higher than September 2013 when it was 104.0.
Meanwhile, the index is above 100 for the fifth consecutive month, reaching the second-highest level since last September.
“Housing supply for existing homes was up in September 6% from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year,” Lawrence Yun, NAR chief economist, said. “Additionally, the current spectacularly low mortgage rates should help more buyers reach the market.”
Regionally, the PHSI in the Northeast increased 1.2% to 87.5 in September, and is now 2.9% above a year ago, while the South increased 1.4% to an index of 118.5 in September, and is 1.7% above last September.
In the Midwest the index decreased 1.2% to 101.2 in September, and is now 4% below September 2013.
The index in the West slightly decreased 0.8% in September to 101.3, but is still 3.6% above a year ago.