(RTTNews.com) - Pending home sales in the U.S. saw a slight increase in the month of October, the National Association of Realtors revealed in a report on Wednesday.
NAR said its pending home sales index inched up by 0.1 percent to 110.0 in October after climbing by 1.4 percent to a revised 109.9 in September.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
He added, "Despite limited listings and steadfast price growth that's now carried into the fall, buyer demand has remained strong because of the consistently reliable job creation in a majority of metro areas."
The report said pending home sales in the Midwest jumped by 1.6 percent, while pending sales in the West and Northeast rose by 0.7 percent and 0.4 percent, respectively.
On the other hand, pending home sales in the South slumped by 1.3 percent but are still 0.8 percent higher than last October.
NAR said Yun expects existing sales to close out 2016 at a pace of around 5.36 million, which surpasses the 5.25 million seen in 2015 and is the highest since 2006.
Last week, NAR released a separate report showing that existing home sales unexpectedly climbed to their highest rate in nearly a decade in October.
The report said existing home sales rose by 2.0 percent to an annual rate of 5.60 million in October after jumping by 3.6 percent to a revised 5.49 million in September.
The increase surprised economists, who had expected existing home sales to drop by 0.9 percent to a rate of 5.42 million in October from the 5.47 million originally reported for the previous month.
With the unexpected increase, existing home sales rose to their highest rate since reaching 5.79 million in February of 2007.
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