US Pending Home Sales Decline in December

The National Association of Realtors (NAR) has reported a significant 5.5% decrease in pending home sales across the United States in December 2024, compared to the previous month. This downturn marks a notable shift in the housing market's momentum.

Regional Variations Highlight Market Volatility

Regionally, the Northeast experienced an 8.1% drop in the Pending Home Sales Index (PHSI) to 62.3, while the South saw a 5.1% decrease to 90.6 from the previous year. These figures underscore the uneven impact of market forces across different parts of the country.

Economic Indicators and Market Sentiment

NAR Chief Economist Lawrence Yun commented on the unexpected downturn, stating, "After four consecutive months of gains in contract signings, a setback is disappointing but not entirely unexpected. Economic trends are rarely linear, and factors such as high mortgage rates continue to influence buyer behavior."