Pending home sales ended 2023 with a double-digit increase, according to the latest data from the National Association of Realtors.
- Pending home sales in the South jumped to an index of 93 in December, up 11.9% from November and the highest level since July.
- Pending home sales are up 1.5% from the same time last year.
Top Region. The South continues to dominate as the next closest region is the Midwest index which increased 5.6% to 80.5 followed by the Northeast (62.3) and the West (61.0).
National. The national pending home sales index rose to 77.3 in December, up 8.3% from November and the highest level since July.
- Pending home sales were up 1.3% when compared to the same time last year
Beat The Street. Economists were projecting a much smaller 1.5% rise to close out 2023.
Analysis. Lawrence Yun, NAR chief economist, is optimistic about 2024. “The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices…Job additions and income growth will further help with housing affordability, but increased supply will be essential to satisfying all potential demand.”