Signed contracts for existing homes climbed again in November, extending a four-month streak of growth and signaling improving conditions in the U.S. housing market.
By yourNEWS Media Newsroom
Pending home sales in the United States rose sharply in November, climbing 3.3 percent to their highest level in nearly three years, according to a late-December report released by the National Association of Realtors, marking the fourth straight month of gains.
The increase represents the strongest performance since February 2023, reflecting what the trade group described as a gradual return of buyer confidence amid easing financial pressures. Lawrence Yun, the association’s chief economist, said the data point to momentum building across the housing market after seasonal adjustments.
“Homebuyer momentum is building. The data show the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years,” Yun said in the report.
Yun attributed the improvement to a combination of moderating mortgage rates, wages rising faster than home prices, and a modest increase in available inventory, which he said is encouraging more buyers to test the market.
On a year-over-year basis, pending sales were up 2.6 percent nationwide in November. All four major regions posted monthly increases, led by the West with a 9.2 percent jump. The South followed with a 2.4 percent gain, while the Northeast rose 1.8 percent and the Midwest increased 1.3 percent.
The South also recorded the strongest annual growth, with pending sales up 3.3 percent from a year earlier. The West posted a 2.4 percent year-over-year increase, followed by the Midwest at 2.2 percent. The Northeast showed the smallest annual gain at 1.8 percent.
The association said its pending home sales index, which tracks contract signings for existing homes, remains a key leading indicator for future market activity. A sale is considered pending once a contract is signed, even though the transaction has not yet closed.
Additional survey data from the group’s Realtors Confidence Index showed that homes spent an average of 36 days on the market in November, while the number of offers per property held steady at 2.2. More than 18 percent of homes sold above the asking price, and 27 percent of buyers made all-cash purchases.
First-time buyers accounted for 30 percent of transactions during the month, down slightly from October and unchanged from a year earlier. Purchases for non-primary residences represented nearly 18 percent of sales, up from both the previous month and the same period last year. Distressed sales remained low at 2 percent, while 5 percent of purchases were for vacation properties.
Six percent of buyers reported purchasing a home based solely on a virtual tour without seeing the property in person, a figure little changed from recent months. Most contracts closed within 30 days, with just 6 percent terminated in the past three months and 15 percent experiencing settlement delays.
Looking ahead, more than 22 percent of surveyed Realtors said they expect buyer traffic to increase over the next three months, up from October but below levels seen a year ago. About 18 percent anticipate an increase in seller traffic, slightly higher than last month but also lower than last year, suggesting cautious optimism as the housing market heads into the new year.
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