Pending Home Sales Recorded No Change in November

Key Highlights

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.

WASHINGTON (December 28, 2023) – Pending home sales in November were identical to those in October, according to the National Association of REALTORS®. The Northeast, Midwest and West posted monthly gains in transactions while the South recorded a loss. All four U.S. regions registered year-over-year declines in transactions.

The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – stayed at 71.6 in November. Year over year, pending transactions 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," said Lawrence Yun, NAR chief economist.

Pending Home Sales Regional Breakdown

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.

The South PHSI declined 2.3% to 83.2 in November, decreasing 6.5% from the prior year. The West index climbed 4.2% in November to 54.0, falling 4.9% from November 2022.

"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 added.