Signed Contracts on Homes Rise for Ninth Straight Month

The National Association of Realtors (NAR) reported this morning that signed home contracts rose for the ninth consecutive month in October. Even better, it was the largest rise since the NAR started the index in 2001.
The Pending Home Sales Index is out of a score of 100, with 100 being the average level of contract activity in 2001. Between September and October, the index rose 3.7 percent to 114.1. A year ago, the index was at 86.6, making the increase the biggest year-over-year gain ever.
In its analysis, NAR divides the country up into sections (Northeast, Midwest, South and West) and then provides more statistics for each area. The index in the South, which includes the DC Metro area, increased 5.4 percent to 115.4, which is 31.6 percent above a year ago.
Lawrence Yun, NAR’s chief economist, attributes the good news to (surprise, surprise) the extended first-time homebuyer’s tax credit:
“The tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.”
While the news is both good and unexpected (experts had predicted a one percent drop in signed contracts), Yun cautioned that the increasing numbers of pending sales would likely decrease in coming months:
“The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.”
See other articles related to: dc area market trends, lawrence yun, national association of realtors, pending home sales
This article originally published at https://dc.urbanturf.com/articles/blog/signed_contracts_on_homes_rise_for_ninth_straight_month/1563.
Most Popular... This Week • Last 30 Days • Ever

UrbanTurf created Pipeline, a searchable database of multifamily projects that are un... read »

As we head towards the end of the year, UrbanTurf is wrapping up its coverage of larg... read »

Prices in Wesley Heights, a DC neighborhood to the south of Spring Valley bordered by... read »

Today, UrbanTurf takes a look at the distinct differences between these two popular f... read »

The plans for the new two-building residential project at Union Market got a big thum... read »
- The Nearly 750 Projects in UrbanTurf's Pipeline
- The 8 Large Developments on the Boards From Anacostia to the Bridge District
- The DC Neighborhood Where Home Prices Have Risen The Most in 2023
- The Difference Between Condos and Co-ops
- Penn and 4th: EDENS Big Residential Plans at Union Market Get Key Approval
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro