Meanwhile, the number of such contracts dropped 1% compared to September 2017 – marking the ninth consecutive fall – which indicates the positive trend might not be sustained in the coming months.
Latest data reveal an unexpected but small increase in the number of contracts signed for buying existing homes
A region-wise break-up of last month’s numbers shows a mixed trend, with Northeast registering a 0.4% decline and Midwest witnessing a 1.2% increase. Year-over-year, the two key markets recorded declines of a 2.7% and 1.1% respectively. With a 1.4% decrease, South registered the biggest monthly fall. West, where homes are the most expensive, jumped 4.5% sequentially but dropped 7.4% compared to last year.
There have been signs of a recovery on the supply front since the beginning of the second half, but by that time affordability came under more pressure. The price hike brings cheer only to the realtors and those who have already bought residential units at reasonable prices. However, some surveys suggest that prices have started cooling in several US cities, in response to the downbeat buyer sentiment.
Meanwhile, experts dismiss the concerns that a further tightening of the market would lead to a bubble-like situation akin to the sub-prime crisis more than a decade ago, citing the underlying stability of the sector and the strong economy.
Earlier, statistics published by the Census Department showed that new home sales dropped 5.5% in September, compared to August, and 13% year-over-year. The number of persons filing for mortgage applications was unchanged from September 2017.