facebook
twitter
rss
account
search
search
 

Pending home sale index reflects eroding affordability

Oct. 28, 2013 at 11:21 AM   |   Comments

| License Photo
WASHINGTON, Oct. 28 (UPI) -- The U.S. Pending Home Sales Index slipped for the fourth consecutive month in September, a national trade group in Washington said.

The National Association of Realtors said their Pending Home Sales Index slipped 5.6 percent in September to 101.6 from a downwardly revised August level of 107.6.

The index is 1.2 percent lower than the September 2012 reading of 102.8.

NAR Chief Economist Lawrence Yun said the index, which hit a six-year peak in May, was likely reflecting eroding affordability.

"Declining housing affordability conditions are likely responsible for the bulk of reduced contract activity," Yun said in a statement, noting it was the first time in 29 months that the index was below its 12-month prior level.

"This tells us to expect lower home sales for the fourth quarter, with a flat trend going into 2014," Yun said.

The Pending Home Sales Index, which reflects sales activity one and two months down the road, is a comparison to the monthly average for 2001, its first year, which was assigned a value of 100.

The NAR said the Pending Home Sales Index for the Northeast dropped 9.6 percent to 76.7 -- a level that is 6.4 percent lower than September 2012.

In the Midwest, the index, dropped 8.3 percent to 102.3, reaching a level 5.7 percent higher than September 2012.

The index fell 0.4 percent in the South to 116.2, which is 2 percent higher than 12 months prior. In the West, the index came to 97.3, down 9 percent from August and 9.8 percent lower than September 2012.

Topics: Lawrence Yun
© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
IS oil smugglers will feel wrath, Kurdish leader says IS oil smugglers will feel wrath, Kurdish leader says
2
Gas ball in Ukraine's court, Kremlin says Gas ball in Ukraine's court, Kremlin says
3
Exxon says it's safe from Russian sanctions Exxon says it's safe from Russian sanctions
4
Navy orders more Block IV Tomahawk cruise missiles Navy orders more Block IV Tomahawk cruise missiles
5
First A-29 rolls off Florida assembly line for USAF program First A-29 rolls off Florida assembly line for USAF program
Trending News
x
Feedback