On Friday, the National Association of Realtors released the Pending Home Sales Index for contracts signed in September 2008. On a seasonally adjusted basis the index was at 89.2 down 4.6% from September 2008 and also up 1.6% compared to September 2007's figure of 87.8. 2001 was previously the slowest year for pending home sales on record. September 2008 was 4.7% higher than September 2001's sales pace. This is the first time since June of 2007 that the 2001 pace was eclipsed.
The increases in pending sales was due to a large increase in the West. Seasonally adjusted the West saw an increase of 3.7% month over month and 39.6% year over year. Each of the regions declined by an average of averaged an increase of 8.5% month over month and 7.9% year over year. This is due to a large decrease in home prices in the West in August. Median home prices in the West dropped from $282,000 in July to $251,600 in August and went back up to $253,600. The median home price in the West is down 39.5% year over year. The other three regions are down by an average of 7.9%.
The NAR made a downward adjustment in their median home sales price forecast for 2008 from $200,700 to $198,600. The NAR is forecasting 2009 median home sales prices to be at $200,800. Just a couple of months ago, their forecast for median sales prices in 2009 was $215,800. October median home sales prices will be announced later this month, but they must not have been pretty. We are now entering into a period where pending home sales slow down dramatically. The credit crisis is exasperating things.
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