Pending home sales dropped 1.5% in October, according to the National Association of Realtors. The Northeast posted a monthly gain in transactions while the Midwest, South and West all recorded losses. All four U.S. regions noted year-over-year declines in transactions.
The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – dropped 1.5% to 71.4 in October, the lowest number since the index was originated in 2001. Year over year, pending transactions declined 8.5%. An index of 100 is equal to the level of contract activity in 2001.