Pending house gross sales declined 9.3 % month over month in December, as a dip in mortgage charges did not outweigh shoppers considerations about excessive house costs and the general financial system.
Pending house gross sales ended the 12 months on a chilly observe, with December contract signings declining 9.3 % month over month.
Month-over-month pending house gross sales declined in all 4 areas, the Nationwide Affiliation of Realtors report mentioned. In the meantime, annual pending house gross sales declined 3 %, with regional traits displaying energy within the South and softness within the Northeast, Midwest and West.
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Lawrence Yun | Chief economist on the Nationwide Affiliation of Realtors
“The housing sector is just not out of the woods but,” NAR Chief Economist Lawrence Yun mentioned in a ready assertion. “After a number of months of encouraging indicators in pending contracts and closed gross sales, the December new contract figures have dampened the short-term outlook.”
“Even after accounting for typical seasonal patterns, deciphering in-person house search exercise within the winter – particularly in December – may be tough because of public holidays, individuals taking day without work, and wintry climate circumstances,” he added. “We’ll be watching the information within the coming months to find out whether or not the comfortable contract signings had been a one-month aberration or the beginning of an underlying development.”
Realtor.com Sr. Financial Analysis Analyst Hannah Jones mentioned December’s dip in pending gross sales displays shoppers’ ongoing considerations about affordability and financial and labor market uncertainty. The decline in mortgage charges was not sufficient to offset these worries, Jones mentioned, whereas noting the hunch could proceed nicely into 2026.
“Mortgage charges fell to their lowest stage of the 12 months in December, providing some reduction on affordability, but an absence of contemporary listings dampened purchaser enthusiasm,” she mentioned in an emailed assertion. “Whereas energetic stock rose 12.1 % 12 months over 12 months, new listings declined 1.8 %, leaving patrons with fewer newly obtainable choices to select from.”
“December’s pending knowledge suggests a gradual begin to the 12 months when it comes to house gross sales,” she added. “Whereas easing mortgage charges and regularly enhancing provide have supplied some assist, the housing market stays in a low gear, with each purchaser and vendor exercise nonetheless subdued.”
Shiny MLS Chief Economist Lisa Sturtevant echoed comparable sentiments in her evaluation, saying that spring could yield a rush in homebuyer exercise.
“[Wednesday’s] report exhibits that many others are taking a wait-and-see strategy to see if market circumstances turn out to be extra favorable in 2026,” she mentioned. “Consumers trying to get into the market this 12 months will typically discover extra stock and larger alternatives to barter on worth and concessions. Sellers wanting a fast sale might want to worth appropriately to entice economically anxious patrons.”
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