NAR: November Pending Home Sales Remain Steady
The National Association of Realtors said declining mortgage rates “sparked a surge in interest.”
WASHINGTON – Pending homes sales remained largely steady in November as compared to the previous month, according to the National Association of Realtors®.
NAR found the Northeast, Midwest and West posted monthly gains in transactions while the South recorded losses. Overall, the four U.S. regions registered year-over-year declines in transactions, NAR said.
The monthly Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – remained at 71.6 in November. Pending transactions year-over-year, were down 5.2%. An index of 100 is equal to the level of contract activity in 2001.
"Although declining mortgage rates did not induce more homebuyers to submit formal contracts in November, it has sparked a surge in interest, as evidenced by a higher number of lockbox openings," Lawrence Yun, NAR chief economist, said.
Regional PHSI breakdown:
- South – Declined 2.3% to 83.2 in November, decreasing 6.5% from the prior year.
- West – Climbed 4.2% in November to 54.0, falling 4.9% from November 2022.
- Northeast – Climbed 0.8% from last month to 64.4, a drop of 6.4% from November 2022.
- Midwest – Increased 0.5% to 76.2 in November, down 2.2% from one year ago.
Yun remains optimist for the coming year.
"With mortgage rates falling further in December – leading to savings of around $300 per month from the recent cyclical peak in rates – home sales will improve in 2024," Yun said.
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