Pending home sales in December dropped by 9.3% from the prior month and were down by 3.0% from the previous year, according to data from the National Association of Realtors (NAR).
On a regional basis, pending home sales were down in all four regions on a month-over-month measurement. On a year-over-year basis, sales were up in the South and down in the Northeast, Midwest, and West. Among the major metro areas, three recorded double-digit year-over-year gains: Louisville (+23.8%), San Antonio (+13.6%), and Virginia Beach (+11.0%).
“The housing sector is not out of the woods yet,” said NAR Chief Economist Lawrence Yun. “After several months of encouraging signs in pending contracts and closed sales, the December new contract figures have dampened the short-term outlook.”
“Even after accounting for typical seasonal patterns, interpreting in-person home search activity in the winter – especially in December – can be tricky due to public holidays, people taking time off, and wintry weather conditions,” Yun added. “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.
Data shows closing activity increased in December. However, new listings did not keep pace so inventory decreased. Consumers prefer seeing abundant inventory before making the major decision of purchasing a home. So, the decline in pending home sales could be a result of dampened consumer enthusiasm about buying a home when there are so few options listed for sale. In December there were only 1.18 million homes on the market – matching the lowest inventory level of 2025.”
