NAR: U.S. Pending Home Sales Fell 5.5% in December; Declined 8.1% in Northeast

Real Estate In-Depth • January 30, 2025

WASHINGTON —Pending home sales retracted 5.5% in December—following four consecutive months of increases—the National Association of Realtors reported today (Jan. 30). All four U.S. regions experienced month-over-month losses in transactions, with the most significant fall in the West. Year-over-year, contract signings fell in all four U.S. regions, with the Midwest seeing the largest decrease.

The Pending Home Sales Index slid 5.5% to 74.2 in December. Year-over-year, pending transactions declined 5.0%. Last year’s cyclical low point occurred in July 2024 at 70.2. An index of 100 is equal to the level of contract activity in 2001.

“After four straight months of gains in contract signings, one step back is not welcome news, but it is not entirely surprising,” said NAR Chief Economist Lawrence Yun. “Economic data never moves in a straight line. High mortgage rates have not significantly dented housing demand due to greater numbers of cash transactions.”

“Contract activity fell more sharply in the high-priced regions of the Northeast and West, where elevated mortgage rates have appreciably cut affordability,” Yun added. “Job gains tend to have greater impact in more affordable regions. It is unclear if heavier-than-usual winter precipitation impacted the timing of purchases.”

Pending Home Sales Regional Breakdown

The Northeast PHSI fell 8.1% from last month to 62.3, down 1.3% from December 2023. The Midwest index shrunk 4.9% to 74.3 in December, down 6.9% from the previous year.

The South PHSI slipped 2.7% to 90.6 in December, down 5.1% from a year ago. The West index tumbled by 10.3% from the prior month to 57.7, down 5.1% from December 2023.

By John Jordan March 25, 2026
She blamed federal government policies and supply chain disruptions post-COVID as some of the factors in her decision to revise the CLCPA.
By John Jordan March 25, 2026
He understood, earlier and more clearly than anyone in his industry, that retail destinations had to evolve from transactional spaces…
By Dr. Jermaine Meadows March 24, 2026
Despite ongoing rent stabilization policies and discussions around potential rent freezes, market pressures continue to drive rent increases.
By Real Estate In-Depth March 24, 2026
A Saks Global spokesperson has confirmed that the company has reversed its decision that the White Plains store would close in the coming months.
By Real Estate In-Depth March 23, 2026
Closed sales declined 10.8% year-over-year, falling from 8,601 homes sold in February 2025 to 7,673 homes last month.
By John Jordan March 20, 2026
The Plus One ADU program provides homeowners with up to $395,000 in financial support and technical assistance to add an ADU.
More