Pending Home Sales See Strongest Growth in Nearly 3 Years
The latest housing market data shows a meaningful rebound in homebuyer activity, with pending home sales rising sharply in November — the biggest month-over-month increase since early 2023. This uptick reflects solid buyer momentum as mortgage rates soften and home sales pick up across key U.S. regions.
Key Takeaways:
- Pending home sales rose 3.3% in November, marking the strongest monthly increase since early 2023 and signaling renewed housing market momentum.
- All four U.S. regions reported contract growth, reflecting broad-based homebuyer demand.
- Lower mortgage rates and improving housing inventory helped drive more signed purchase agreements.
- Rising pending contracts suggest existing home sales could strengthen in early 2026, pointing to a potential rebound in overall home sales activity.
Pending Home Sales Jump 3.3% in November
According to the National Association of Realtors® (NAR), the Pending Home Sales Index (PHSI) climbed 3.3% in November compared with October, significantly outpacing economists’ expectations. On a year-over-year basis, pending contracts were also up about 2.6%, signaling renewed interest from homebuyers in signing purchase agreements.
Pending home sales are a leading indicator of future existing home sales, representing homes with signed contracts that have not yet closed. Because sales typically close one to two months after a contract is signed, this increase is a strong signal that existing home sales may gain steam in early 2026.
All Regions Show Growth in Home Sales Contracts
The November gains weren’t isolated to one part of the country. All four major U.S. regions reported increases in homes going under contract:
- West: ~9.2% month-over-month increase
- South: ~2.4% month-over-month increase
- Northeast: ~1.8% month-over-month increase
- Midwest: ~1.3% month-over-month increase
This widespread improvement suggests broadening buyer demand, not just localized market strength.
What’s Driving Uptick in Home Sales?
Industry economists point to several key drivers behind the pending sales surge:
- Lower mortgage rates — Borrowing costs remained relatively attractive in November, pulling more buyers off the sidelines.
- Improved affordability — Wage growth outpacing home price gains has helped make homeownership more accessible.
- Growing inventory — More housing choices compared with last year have given buyers expanded options, prompting contract signings.
NAR Chief Economist Lawrence Yun described the data as the “strongest performance of the year after accounting for seasonal factors, and the best in nearly three years.”
What This Means for Home Sellers & Buyers
For home sellers, rising pending contracts can signal a warming market and potentially shorter time on market once listings go live — especially in regions where inventory is limited.
For buyers, increasing contract activity often aligns with improving confidence and potentially more competitive offers as buyer interest returns. Even though affordability challenges continue in some markets, the November momentum suggests a possible easing of market headwinds.
Outlook: Home Sales Expected to Follow Pending Trends
While pending home sales don’t guarantee closed deals, they are a reliable forward indicator of home-sale volume. With nearly all regions showing stronger contract activity and mortgage rates remaining more favorable than earlier in 2025, industry forecasts expect home sales to strengthen in the first half of 2026.
No comments:
Post a Comment