The level of pending home sales in November was unchanged from October and down by 5.2% from one year earlier, according to the National Association of Realtors (NAR).
NAR’s Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings – stayed at 71.6 in November. An index of 100 is equal to the level of contract activity in 2001.
The Northeast, Midwest and West posted monthly gains in transactions while the South recorded a loss. All four regions registered year-over-year declines in transactions.
“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,” said Lawrence Yun, NAR chief economist. “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.”
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