Pending home sales in the South fell to a new low in 2023, according to the latest data from the National Association of Realtors.
- M-O-M: The South Pending Home Sales Index fell to 83.2 in November, down 2.3% from October and the lowest level all year.
- Y-O-Y: Pending home sales are down 6.5% from the same time last year.
Best Of The Rest. Despite the drop, the South is still doing the best compared to the other three regions. The Midwest took the number two spot with 0.5% increase to an index of 76.2 followed by the Northeast at 64.4(-6.4%) and the West at 54.0(+4.9%).
Nationally. Pending home sales were unchanged with a national index of 71.6 in November, unchanged from the prior month and still at the lowest level since the great recession.
- Economists projected a 1.0% increase in November.
Analysis. Lawrence Yun said things are looking up as we end 2023. “With mortgage rates falling further in December – leading to savings of around $300 per month from the recent cyclical peak in rates – home sales will improve in 2024.”
Bottom Line: We are ending 2023 at low point but if rates continue to fall things could improve fast to start 2024.