NAR: Northeast Pending Home Sales Fell 11% in December

WASHINGTON—Pending home sales in December decreased by 9.3% from the prior month and 3.0% year over year, according to the National Association of Realtors Pending Home Sales Report released on Jan. 21.

Month-over-month pending home sales declined in all four regions. Year-over-year pending home sales rose in the South and declined in the Northeast, Midwest and West.

“The housing sector is not out of the woods yet,” said NAR Chief Economist Lawrence Yun. “After several months of encouraging signs in pending contracts and closed sales, the December new contract figures have dampened the short-term outlook.”

“Even after accounting for typical seasonal patterns, interpreting in-person home search activity in the winter—especially in December—can be tricky due to public holidays, people taking time off, and wintry weather conditions,” Yun added. “We’ll be watching the data in the coming months to determine whether the soft contract signings were a one-month aberration or the start of an underlying trend.”

“Data shows closing activity increased in December. However, new listings did not keep pace so inventory decreased. Consumers prefer seeing abundant inventory before making the major decision of purchasing a home. So, the decline in pending home sales could be a result of dampened consumer enthusiasm about buying a home when there are so few options listed for sale. In December there were only 1.18 million homes on the market—matching the lowest inventory level of 2025.”

• 9.3% decrease month over month
• 3.0% decrease year over year

• 11.0% decrease month over month
• 3.6% decrease year over year

• 14.9% decrease month over month
• 9.8% decrease year over year

• 4.0% decrease month over month
• 2.0% increase year over year

• 13.3% decrease month over month
• 5.1% decrease year over year

The Realtors Confidence Index (RCI) survey gathers information from Realtors about local market conditions based on their client interactions and the characteristics of their most recent sales for the month. The RCI is reflective of closed sales activity for December. Findings from the latest RCI report include:

• 39 days: Median time on market for properties, up from 36 days last month and 35 days in December 2024.
• 29% of sales were first-time homebuyers, down from 30% last month and 31% in December 2024.
• 28% of transactions were cash sales, up from 27% a month ago and unchanged from December 2024.
• 18% of transactions were individual investors or second-home buyers, unchanged from last month and up from 16% in December 2024.
• 2% of sales were distressed sales (foreclosures and short sales), unchanged from a month ago and December 2024.
• 31% of NAR members expect an increase in buyer traffic over the next three months, up from 22% last month and 27% one year ago.
• 28% expect an increase in seller traffic, up from 18% last month and 27% one year ago.