Pending home sales increased 2.2% in November compared with October and were up 6.9% compared with November 2023, according to the National Association of Realtors (NAR).
“Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” says Lawrence Yun, chief economist for NAR, in a statement. “Mortgage rates have averaged above 6 percent 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.”
Regionally, and month-over-month, pending home sales increased 1.3% in the Northeast, 0.4% in the Midwest, 5.2% in the South, and 0.5% in the West.
Year-over-year, sales were up 5.6% in the Northeast, 1.6% in the Midwest, 8.5% in the South, and 11.8% in the West.
“It appears that some markets will outperform, driven primarily by local job gains and the flow of new inventory supply,” Yun says.
“Despite higher mortgage rates in November and persistent affordability challengers, buyers took advantage of more inventory as pending home sales reached the highest level in nearly two years,” says Odeta Kushi, deputy chief economist for First American, in a statement. “On a regional basis, pending home sales increased month over month in the South, West and Midwest, but declined in the Northeast.”
“We find the strongest supply surges in Southern and Western markets, but more muted improvements in the Northeast and Midwest,” Kushi says. “Where supply surges, improving affordability often follows, which may bring buyers off the sidelines, unlocking pent up demand and reinvigorating market activity in the new year.”
Photo: Annika Wischnewsky
