Pending Home Sales climbed 8.3% from November to December per the National Association of REALTORS® (NAR), coming in much higher than expected as the improvement in mortgage rates clearly sparked activity last month. Sales were also 1.3% higher than the level reported in December 2022.
Pending Home Sales measure signed contracts on existing homes, making them an important forward-looking indicator for closings as measured by Existing Home Sales.
What’s the bottom line? NAR’s Chief Economist, Lawrence Yun noted that, “Home sales are projected to rise significantly in each of the next two years as the market steadily returns to normal sales activity.” He stressed that “increased supply will be essential to satisfying all potential demand.”