Pending Home Sales Slipped In December

Pending sales reversed a four-month upward swing in December, falling across the country as Americans headed toward 2025.
NAR’s Pending Home Sales Index decreased 5.5% from November to a reading of 74.2. An index of 100 equals the level of contract activity in 2001 when NAR began tracking this data.
Year-over-year, sales were down 5%.
All four regions saw both monthly and annual declines, especially the West and Midwest, respectively.
NAR Chief Economist Lawrence Yun emphasized that the decline should not be taken as a sign of a worsening market, however.
“After four straight months of gains in contract signings, one step back is not welcome news, but it is not entirely surprising. Economic data never moves in a straight line. High mortgage rates have not significantly dented housing demand due to greater numbers of cash transactions,” he said.
December new and existing home sales both saw surprise increases, in fact.
But regionality continues to reign. National figures don’t reflect the situation in individual markets.
“Contract activity fell more sharply in the high-priced regions of the Northeast and West, where elevated mortgage rates have appreciably cut affordability,” Yun noted.
Rates moved up throughout December, making these regions even tougher for prospective buyers on a budget. Many home shoppers may have waited for January to see what the new year might bring, including potential movement after President Donald Trump’s inauguration.