Existing home sales fell 6.4% in September from the previous month, but October could turn out to be a good month, according to RE/MAX, the national realty company.
"We usually see sales in September fall below August levels, but we're encouraged by reports of signed contracts in the field," said RE/MAX chief executive Margaret Kelly.
The Denver-based company also reported that home prices fell 2.7% in September from the prior month. But prices are up 0.9% from a year ago and remain "relatively stable," according to a national housing report issued by the firm.
Home prices in 33 of the 54 metropolitan markets tracked by RE/MAX showed a year-over-year increase.
The National Association of Realtors will release its September home sales report on Oct. 25.
In other housing news, Atlanta Federal Reserve president Dennis Lockhart said Tuesday morning that despite rock bottom mortgage rates, housing conditions in his district are not improving much.
Lockhart said from a "housing point of view" there is "some activity" in the home buying market, "but there is no broad improvement."
Speaking on CNBC, he said he is skeptical that ultra low mortgage rates are bringing in much activity.
He also worried that current tight loan standards are making it tough for borrowers to quality for a mortgage. "I'm still hearing that there's a long way to go" before housing conditions improve in the Atlanta Fed district.