The index is now up 3.9% from October 2014 and has increased year-over-year for 14 months in a row.
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Economists surveyed by The Wall Street Journal had predicted a 1.5% increase in October sales.
Pending home sales have been trending modestly lower since the summer.
“Areas that are heavily reliant on oil-related jobs are the exception and have already started to see some softness in sales because of declining energy prices”, adds Yun.
The Midwest and South recorded decreases of 1 percent and 1.7 percent, making the PHSI 103.9 and 118.1, respectively.
Home resales, which make up about 90 percent of the market, retreated in October from the second-highest level since 2007, the NAR reported last week.
Although further expansion in existing-sales is expected next year, continuing inventory shortages and affordability pressures from rising prices and mortgage rates will likely temper sales growth to around 3% (5.45 million) in 2016. The numbers are all up when compared to the pace a year ago, however. A pending sale usually means that there is an agreement between the buyer and seller, but the transaction is not yet finalized.
The pending sales report followed last week’s mixed news about home sales. A reading of 100 corresponds to the average level of contract activity in 2001, or “historically healthy” home-buying traffic, according to the NAR.
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The number of existing homes that went under contract in the USA inched up in October, a sign the housing market remains stable heading into the final months of the year.
