November pending home sales up 2.2%
For the fourth time in as many months, pending home sales grew in November, as potential homebuyers were able to take advantage of an increase in home listings. Pending home sales in November rose 2.2% month-over-month, according to the National Association of Realtors® (NAR). The Pending Home Sales Index (PHSI) was 79.0 for the month, the highest level since February of 2023.
Three of the four regions saw increases from October, and pending transactions were also up 6.9% from a year ago.
- Northeast: down 1.3% to 67.8, up 5.63% from November 2023
- Midwest: up 0.4% to 78.1, up 1.6% from November 2023
- South: up 5.2% to 94.5, up 8.5% from November 2023
- West: up 0.5% to 64.3, up 11.8% from November 2023
“It appears that some markets will outperform, driven primarily by local job gains and the flow of new inventory supply,” said NAR Chief Economist Lawrence Yun.
Shifting towards a buyer’s market
The fact that pending home sales continue to go up without a corresponding dip in mortgage rates is good news for the market. “Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” said Yun.
“Mortgage rates have averaged above 6% for the past 24 months. Buyers are no longer waiting for or expecting mortgage rates to fall substantially. Furthermore, buyers are in a better position to negotiate as the market shifts away from a seller’s market.”
This suggests that 2025 will offer a great opportunity for first-time homebuyers. Keep in mind that market conditions are constantly changing, and what’s true nationally may not be true where you live. That’s why it’s so important to work with a local loan officer.
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