Pending Home Sales Fall 9.3%

(Illustration courtesy of National Association of Realtors)

Pending home sales decreased 9.3% in December, the National Association of Realtors reported Wednesday.

The report noted pending home sales are down 3.0% compared to a year ago.

Month-over-month pending home sales declined in all four regions, the report said. Year-over-year pending home sales rose in the South and declined in the Northeast, Midwest and West.

First American Senior Economist Sam Williamson noted pending home sales hit a multi-year high in November. “As a forward‑looking indicator based on contract signings, the decline signals a notable pullback after several months of rising momentum,” he said. “Lower mortgage rates, improving affordability and growing inventory had brought more buyers back into the market this fall, with November marking the strongest contract activity since early 2023. The December drop may also reflect softer listings momentum following strong closing activity, which may have reduced available options and dampened buyer enthusiasm.”

NAR Chief Economist Lawrence Yun said the housing sector is not out of the woods yet. “After several months of encouraging signs in pending contracts and closed sales, the December new contract figures have dampened the short-term outlook,” he added.

Yun noted that in-person home search activity can be tricky in December due to public holidays, people taking time off and wintry weather conditions. “We’ll be watching the data in the coming months to determine whether the soft contract signings were a one-month aberration or the start of an underlying trend.”