September pending home sales rose 7.4% to their highest level since March, according to the National Association of REALTORS® (NAR).

Pending sales, in which the contract has been signed but the transaction has not closed, are considered a leading indicator and generally precede existing home sales by a month or two. Year over year, sales were up 2.6%.    

Regionally, pending sales showed overall positive trends rising month over month in all four major regions of the U.S. The Northeast and West saw growth year over year, while sales in the Midwest and South remained stable.

“Contract signings rose across all regions of the country as buyers took advantage of the combination of lower mortgage rates in late summer and more inventory choices,” said Lawrence Yun, NAR chief economist. “Further gains are expected if the economy continues to add jobs, inventory levels grow and mortgage rates hold steady.”

Looking ahead to the next two years, Yun anticipates slower home price appreciation and gradual increases in sales.

“After two years of sluggish home sales in 2023 and 2024, existing home sales are forecasted to rise to 4.47 million in 2025 and more than 5 million in 2026,” Yun said. “During the next two years, expect a slower rate of growth in home prices that’s roughly in line with the consumer price index because of additional supply reaching the market.”