US Pending Home Sales Fall 5.5% in December

On Thursday, the National Association of Realtors® (NAR) released its Pending Homes Sales Index (PHSI) for December. The PHSI—based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops—declined 5.5% to a reading of 74.2 in December. Year-over-year, sales were down 5.0%.

An index of 100 is equal to the level of contract activity in 2001.

All four regions declined on both a monthly and annual basis in December:

• The Northeast PHSI declined 8.1% to a reading of 62.3 and was down 1.3% from December 2023.
• The Midwest PHSI fell 4.9% to a reading of 74.3 and was down 6.9% from the previous year.
• The South PHSI slipped 2.7 to a reading of 90.6 and down 5.1% from a year ago.
• The West PHSI declined 10.3% to a reading of 57.7 and was down 5.1% from December 2023.