Pending Home Sales Slid 4 Percent in November

Pending home sales slid for the sixth consecutive month in November, according to the National Association of Realtors. Compared to October, the Pending Home Sales Index fell 4 percent in November. 

All four U.S. regions recorded month-over-month decreases, and all four regions saw year-over-year declines in transactions.

“Pending home sales recorded the second-lowest monthly reading in 20 years as interest rates, which climbed at one of the fastest paces on record this year, drastically cut into the number of contract signings to buy a home,” said NAR Chief Economist Lawrence Yun. “Falling home sales and construction have hurt broader economic activity.”

Year-over-year, pending transactions dropped by 37.8 percent. An index of 100 is equal to the level of contract activity in 2001.

On a monthly basis, the West index dropped by 0.9 percent, while retreating 45.7 percent from November 2021. The Northeast slipped 7.9 percent from October and 34.9 percent annually. 

The Midwest index decreased 6.6 percent in November, but was down 31.6 percent from one year ago. The South was down 2.3 percent in November 2022, and 38.5 percent compared to a year earlier.