“The recovery in home sales has clearly at least stalled,” said Jim O’Sullivan, chief U.S. economist with High Frequency Economics, a forecasting firm. “With other data showing the recovery in the labor market still on track, and confidence moving up again, we expect home sales to start trending up again in coming months.”
A limited supply of homes has pushed up prices in the past year. Prices of existing homes jumped 12 percent in September from the previous year, according to real estate data provider CoreLogic.
Signed contracts fell sharply in the West, where investors have snapped up foreclosed homes and bid up prices in the past year. Signed contracts also slipped in the South, another area hit hard during the crisis.
But contracts rose last month in the Northeast and Midwest.