TAMPA, Fla. — After six straight months of declines, pending home sales showed a little life in December, posting a more than 2% gain to close out 2022, the National Association of Realtors reported Friday.
According to the Pending Home Sales Index, pending sales grew 2.5% in December. But the news wasn't all good. Measuring year-over-year, pending transactions dropped by 33.8%.
“This recent low point in home sales activity is likely over,” NAR Chief Economist Lawrence Yun said in a statement. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”
Pending home prices dropped the most (year-over-year) in the South and in the West. Conversely, that's also the only two regions to show month-over-month gains, the NAR reported.
“The new normal for mortgage rates will likely be in the 5.5% to 6.5% range,” Yun added. “Job gains will steadily become important in driving local home-sales markets. The South, in particular, is set to outperform the rest of the country..."
