Pending home sales increased 3.3% in November compared with October and were up 2.6% compared with November 2024, according to the National Association of Realtors (NAR).
Regionally, pending home sales rose in the Northeast, Midwest, South and West – both month-over-month and year-over-year.
“Homebuyer momentum is building,” says Lawrence Yun, chief economist for NAR, in a statement. “The data shows the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years, dating back to February 2023.”
“Improving housing affordability – driven by lower mortgage rates and wage growth rising faster than home prices – is helping buyers test the market,” Yun adds. “More inventory choices compared to last year are also attracting more buyers to the market.”
Currently, about 22% of NAR members say they expect an increase in buyer traffic over the next three months, up from 17% in October but down from 24% one year ago.
Meanwhile, 18% expect an increase in seller traffic, up from 16% last month and down from 22% in November 2024.
“As we look to 2026, we believe sales activity next year will continue to be shaped more by ‘life happens’ moments – job changes, marriages, births, and other personal milestones – than by falling mortgage rates,” says Sam Williamson, senior economist for First American, in a statement. “With affordability still stretched and inventory tight in many regions, the recent pullback in rates and cooling price growth have helped stabilize the landscape. These shifts offer a clearer path for buyers and sellers as 2026 approaches, setting the stage for a more constructive year ahead.”
Photo: Leon Seibert