In November 2023, pending home sales in the United States remained unchanged compared to October, according to the National Association of REALTORS®. While the Northeast, Midwest, and West regions experienced monthly gains in transactions, the South recorded a decline. Year-over-year, all four U.S. regions showed decreases in transactions.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, stayed at 71.6 in November, reflecting a 5.2% year-over-year decline. A value of 100 equals the contract activity level in 2001.
Lawrence Yun, NAR chief economist, noted that despite declining mortgage rates not leading to more formal contracts in November, there was an increase in interest, as seen in higher lockbox openings.
Regional breakdown:
- Northeast PHSI rose 0.8% to 64.4, down 6.4% from November 2022.
- Midwest index increased 0.5% to 76.2, down 2.2% from one year ago.
- South PHSI declined 2.3% to 83.2, decreasing 6.5% from the prior year.
- West index climbed 4.2% to 54.0, falling 4.9% from November 2022.
Yun anticipates an improvement in home sales in 2024, attributing it to further mortgage rate reductions in December, resulting in monthly savings for buyers. The National Association of REALTORS® is the largest trade association in the U.S. representing over 1.5 million members in the real estate industry.
The Pending Home Sales Index serves as a leading indicator for the housing sector, reflecting pending sales of existing homes. Pending contracts are considered early indicators of upcoming sales closings, with the index based on a sample covering about 40% of multiple listing service data each month. The index, set at 100 for the average contract activity in 2001, demonstrates parallels between monthly sales-contract activity and closed existing-home sales in the subsequent two months.
NOTE: Existing-Home Sales for December will be reported January 19, 2024. The next Pending Home Sales Index will be released January 26, 2024. All release times are 10 a.m. Eastern. View the NAR Statistical News Release Schedule.
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