Pending Homes Sales Continued to Decline in November

The National Association of Realtors® (NAR) reported on Wednesday (12-28-22), that their Pending Homes Sales Index (PHSI) which is based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops, declined 4.0%, in November from October to a reading of 73.9 An index of 100 is equal to the level of contract activity in 2001. The PHSI has dropped for the sixth consecutive month and has been down twelve of the past thirteen months. Year-over-year contract signings have declined 37.8%.

The NAR is reporting that in November all four major U.S. regions experienced month-over-month declines. In November, the Northeast PHSI declined 7.9% from October to reading of 63.3, a drop of 34.9% from November 2021. The Midwest PHSI decreased 6.6% to reading of 77.8 in November and was down 31.6% from a year ago. The South PHSI in November fell 2.3%, to a reading of 88.5, a decline of 38.5% from November 2021. The West PHSI slipped 0.9% in November to a reading of 55.1, down 45.7% from November 2021.