Following a 2.2 percent decline in November, pending home sales slid once again in December, according to new numbers out by the National Association of Realtors.
With all four major U.S. regions posted both month-over-month and year-over-year drops in contract activity, December’s pending sales slid 3.8 percent, per NAR. Year-over-year, transactions decreased by 6.9 percent.
“Pending home sales faded toward the end of 2021, as a diminished housing supply offered consumers very few options,” said Lawrence Yun, NAR’s chief economist. “Mortgage rates have climbed steadily the last several weeks, which unfortunately will ultimately push aside marginal buyers.”
The West saw the biggest slump in pending sales last month, posting a 10 percent decrease month-to-month and 16.2 percent from a year prior on NAR’s Pending Home Sales Index. The Northeast pending sales dropped 1.2 percent on the monthly, 10.5 percent from a year ago.
In the Midwest, the index dropped 3.7 percent last month, down 1.2 percent from December 2020. Pending home sales in the South were down 1.8 percent in December, down 3.9 percent compared to a year earlier.