The latest data showed that existing home sales have risen in the four of the last five months. Now, a new report shows that home sales are likely to continue increasing as the year closes out. If that happens, existing home sales will hit a level not seen in 15 years.
According to a new report from the National Association of Realtors, pending home sales increased by 7.5% in October over September’s total.
Pending home sales is an indicator of future home sales based on signed real estate contracts, and October’s increase indicates that home sales figures are likely to rise in both November and December.
If that happens as expected, existing home sales will end up with the best year since 2006.
"The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years,” NAR Chief Economist Lawrence Yun said.
According to the NAR report, real estate contract activity rose monthly in all four of the major regions in the country as some buyers accelerated their home search due to an expected rise in mortgage rates.
"Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later," Yun said. "This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.”