Pending home sales rose across the U.S. in November on a monthly and annual basis. Seasonally adjusted, it was the best month for contract signings since early 2023.
The National Association of Realtors (NAR) reported Monday that homes under contract were 3.3% higher in November than October, and 2.6% higher than a year ago.
In a statement accompanying the figures, NAR Chief Economist Lawrence Yun attributed the heightened buyer activity to incremental improvements in purchase affordability.
“Homebuyer momentum is building,” he said, “driven by lower mortgage rates and wage growth rising faster than home prices.” Yun also noted that expanded inventory was providing buyers with more options.
On a monthly basis, pending sales rose sharply in the West, up 9.2% from October. Pending sales were up 2.4% in the South, 1.3% in the Midwest and 1.8% in the Northeast.
Pending sales rose at the quickest pace annually in the South last month, up 3.3% compared to 2.4% in the West, 2.2% in the Midwest and 1.8% in the Northeast.
“Taken together, the regional data suggest that buyers are finally finding the payment‑to‑paycheck equation more manageable in areas where prices are cooling the most,” said Sam Williamson, senior economist at title insurance giant First American Financial Corp., sharing his reaction to Monday’s NAR report with Scotsman Guide.
Pending sales provide an indicator of upcoming closed home sales, though the duration between pending contracts and completed sales can vary from one or two weeks to one or two months. Some pending contracts fall through and never translate to a closed sale.
Closed sales of existing homes declined 1% annually in November, though they rose 0.4% from October. Pending home sales had declined 0.4% year over year in October, but November reversed those losses.
Pending sales figures for November include homes that went under contract during the 43-day government shutdown that lasted from Oct. 1 to Nov. 12.
Some homebuyers took advantage of more favorable purchase conditions last month, despite consumers broadly reporting gloomy economic outlooks fueled by rising costs of living and shutdown-related malaise.
Lisa Sturtevant, chief economist at multiple-listing service Bright MLS, offered a measured take on the increased homebuying activity last month.
“Despite the apparent uptick in pending sales activity in November, it is likely that the housing market will end 2025 with sales about at last year’s levels,” said Sturtevant. She noted that, heading into 2026, “increasing economic uncertainty will continue to hold some buyers and sellers back.”
Amid lackluster buyer demand and widespread price softening, many home sellers have reportedly pulled their listings.
However, an update to the Realtor Confidence Index released concurrently with November’s pending sales data showed a slight rise from October in the number of NAR members who expect homebuying activity to improve in the near term.
One-fifth (22%) of NAR members said they expect an increase in buyer traffic over the next three months, up from 17% in October but down from 24% one year ago, while 18% expect an increase in seller activity, up from 16% last month and down from 22% last year.
