Pending homes sales dip for fourth straight month, but still break record

Contract signings set new high for December

National /
Jan.January 29, 2021 05:00 PM
(iStock)

(iStock)

An index tracking pending U.S. home sales reported its fourth consecutive monthly drop in December.

The metric, from the National Association of Realtors, fell by 0.3 percent last month, compared with November.

But it was still the busiest December ever for buyers inking contracts for homes. Contract signings were up 21 percent compared to the same month in 2019.

Though a drop in pending home sales is often thought to indicate a drop in demand from homebuyers, Lawrence Yun, NAR’s chief economist, attributed the index’s monthly declines in the fall to the historically low housing inventory.

“There is a high demand for housing and a great number of would-be buyers, and therefore sales should rise with more new listings,” he said in a statement.

He added that he expects home prices to continue to rise with inventory still well below normal.

All regional indices tracking pending sales reported year-over-year gains. As for month-over-month changes from November to December, sales contracts in the Northeast and Southern regions bucked the national downward trend, reporting increases of 3.1 percent and 0.1 percent, respectively.

The annual pace of existing home sales in December surpassed the highest on record, which was at the height of the housing bubble in 2006, according to NAR. Supply dropped to the historically low level of just over 1 million homes on the market, which would take under two months to be sold at last month’s pace.





    Related Articles

    arrow_forward_ios
    Photo illustration of Fredrik Eklund and Dottie Herman (iStock, Getty)
    Douglas Elliman expands into tight Texas housing market
    Douglas Elliman expands into tight Texas housing market
    15 Central Park West penthouse and Lindsay Rosenwald (Google Maps, BHS, Fortress)
    15 Central Park West penthouse sells for $46.7M
    15 Central Park West penthouse sells for $46.7M
    (iStock)
    Hot, hot, hot: Resi market sets new price records in March
    Hot, hot, hot: Resi market sets new price records in March
    Housing starts soared in March, which is good news for a residential market hampered by low inventory and high demand. (iStock)
    Good news: March housing starts soar 19%
    Good news: March housing starts soar 19%
    Ilan Bracha (Getty)
    From boss to broker: Ilan Bracha joins Corcoran
    From boss to broker: Ilan Bracha joins Corcoran
    Duke Properties’ CEO Albert Dweck. (Duke)
    Duke Properties’ CEO used company funds for lavish lifestyle: lawsuit
    Duke Properties’ CEO used company funds for lavish lifestyle: lawsuit
    (iStock)
    Homebuilder sentiment ticks up in April
    Homebuilder sentiment ticks up in April
    Bella Hadid and 63 Greene Street (Getty, StreetEasy)
    Bella Hadid’s $6.5M Soho penthouse finds a buyer
    Bella Hadid’s $6.5M Soho penthouse finds a buyer
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...