US Pending Home Sales: Southern decline wipes away gains  - Wells Fargo

Analysts from Wells Fargo, point out that Pending home sales were flat in September following a downwardly revised August print, with the index now at its lowest level in over two years.

Key Quotes: 

“Pending home sales, which measure purchase contracts, were flat in the month of September. Year-ago readings continue to decline as inventory growth lags demand. The South was the only region to decline over the month, marking its third consecutive drop. Storm disruptions certainly played a role in this decline. However, Florida and Houston should return to their prior pace of sales fairly soon.”

“Pending sales priced below $100,000 fell 17 percent and those between $100,000 and $250,000 fell 5.9 percent. Continued supply constraints remain an issue for potential buyers of lower priced homes, while all higher price brackets showed gains.”

“Unfortunately for lower end buyers, as winter months approach inventory tends to decline. This could mean the search for a home could extend into 2018 for these types of buyers.”