NAR: Pending home sales remained unchanged in November 2023
Key Takeaways
- Pending home sales in November remained the same as one month ago.
- Month over month, contract signings grew in the Northeast, Midwest and West but they contracted in the South.
- Pending home sales dropped in all four U.S. regions compared to one year ago.
Pending home sales remained unchanged in November compared to October, a mixed bag offering hints of both continued buyer caution and potential future improvement, according to the National Association of REALTORS (NAR) Pending Home Sales Index (PHSI).
While regional activity showed some diversity, overall, the market still sits below pre-pandemic levels.
Regional Flickers amid National Stagnation
- Northeast and Midwest: The Northeast PHSI rose 0.8% from last month to 64.4, a drop of 6.4% from November 2022. The Midwest index increased 0.5% to 76.2 in November, down 2.2% from one year ago. A glimmer of hope emerged in these regions, with both experiencing modest month-over-month increases in pending sales. However, year-over-year numbers remained negative.
- South: The South PHSI declined 2.3% to 83.2 in November, decreasing 6.5% from the prior year. The southern region saw a slight dip in pending sales, with year-over-year declines mirroring the national trend.
- West: The West index climbed 4.2% in November to 54.0, falling 4.9% from November 2022. The West displayed both the highest gain and still the largest annual decline.
Looking Forward
Despite the flat national figure, NAR Chief Economist Lawrence Yun sees a silver lining in the form of falling mortgage rates.
“While November contracts stayed steady, lower rates in December have already sparked increased buyer interest, suggesting brighter prospects for 2024,” he said, pointing to potential monthly savings of around $300 compared to recent peaks.
