Skip to main content

Pending Home Sales Rise Slightly in November

Dec 30, 2019
Photo credit: Getty Images/Natali_Mis

Pending home sales increased in November, rebounding from the prior month’s decline, according to the National Association of Realtors (NAR). The West region reported the highest growth last month, while the other three major U.S. regions saw only marginal variances in month-over-month contract activity. Pending home sales were up nationally and up in all regions compared to one year ago.
The Pending Home Sales Index (PHSI), rose 1.2 percent to 108.5 in November. Year-over-year contract signings jumped 7.4 percent. An index of 100 is equal to the level of contract activity in 2001.
“Despite the insufficient level of inventory, pending home contracts still increased in November,” said Lawrence Yun, NAR’s chief economist, noting that housing inventory has been in decline for six straight months dating back to June 2019. “The favorable conditions are expected throughout 2020 as well, but supply is not yet meeting the healthy demand.”
At the recent NAR Real Estate Forecast Summit, the consensus forecast called for two percent GDP growth, a 3.7 percent unemployment rate and a 3.8 percent average mortgage rate in 2020. Home prices were projected to rise by 3.6 percent in 2020 after a five percent gain in 2019.
“Sale prices continue to rise, but I am hopeful that we will see price appreciation slow in 2020,” said Yun. “Builder confidence levels are high, so we just need housing supply to match and more home construction to take place in the coming year.”
The regional indices had mixed results in November. The Northeast PHSI slid 0.1 percent to 96.3 in November, 2.6 percent higher than a year ago. In the Midwest, the index rose one percent to 102.5 last month, five percent higher than in November 2018.
Pending home sales in the South decreased 0.2 percent to an index of 125.0 in November, a 7.7 percent increase from last November. The index in the West grew 5.5 percent in November 2019 to 98.4, an increase of 14.0 percent from a year ago.
Pending home sales increased in November

About the author
Dec 30, 2019
Broker Action Coalition Unveils Inaugural Board Of Directors

Newly formed nonprofit organization BAC announces industry professionals to guide its mission of legislative change and educational initiatives in the mortgage industry.

Feb 21, 2024
GSEs Report Strong Earnings

Robust performance marks growth for both Fannie Mae and Freddie Mac, despite a dip in home purchases.

Feb 15, 2024
Friendly Competition Joins Forces

The merger aims to enhance local fulfillment and sales support, marking Guild’s sixth acquisition since 2021 and expanding its licensed originators to over 2,100 amidst a challenging market.

Feb 14, 2024
Guild Mortgage Announces Acquisition Of Competitor Academy Mortgage, Bolsters National Presence

The strategic move will see Guild Mortgage enhance its market share and become the 8th largest non-bank retail lender in the U.S., welcoming over 600 loan officers from Academy.

Feb 13, 2024
Proprietary Capital-Led Group Acquires Multichannel Lender AFR

Colorado-based fund manager Proprietary Capital finalizes acquisition of American Financial Resources.

Feb 13, 2024
Are Trigger Leads Harmful? Prove it

Trade associations claim trigger leads are dangerous to consumers.

Feb 08, 2024