The National Association of Realtors (NAR) announced on Monday that its Pending Home Sales Index, which tracks signed contracts for home purchases, climbed 2.2% in November to
79.0—the highest level recorded since February 2023.
Contracts for purchasing previously owned homes in the US exceeded expectations in November, marking the fourth consecutive month of growth. This trend reflects buyers taking advantage of improved inventory levels despite persistently high mortgage rates.
The NAR's Pending Home Sales Index rose from 77.3 in October, surpassing economists' predictions of a 0.9% increase following October's 1.8% gain. Additionally, pending home sales showed a year-over-year rise of 6.9%. Regionally, the Midwest, South, and West experienced monthly increases in contract activity, while the Northeast saw a slight decline. However, all four regions reported annual gains.
This uptick in contract signings aligns with a previously reported increase in completed existing home purchases for November. That earlier report highlighted a nearly 18% year-over-year jump in the inventory of homes available for sale.
"Consumers appear to have adjusted their expectations regarding mortgage rates and are capitalizing on increased inventory," said Lawrence Yun, NAR's chief economist. "Mortgage rates have remained above 6% for the past two years. Buyers are no longer holding out for a significant drop in rates. Instead, they are seizing opportunities to negotiate better deals as the market transitions away from being predominantly seller-driven."
The data suggests a growing willingness among buyers to navigate the current market conditions, fueled by recalibrated expectations and a shift in bargaining power.
