Pending home sales fell 9.3% month-over-month in December as lower mortgage rates failed to outweigh rising home prices and consumer concerns about the overall economy.
The number of pending home sales was sluggish, ending the year with a 9.3% month-on-month decline in contracts in December.
Pending home sales fell month-over-month in all four regions, according to a report from the National Association of Realtors. On the other hand, annual pending home sales decreased by 3%, with regional trends showing steady growth in the South and weakness in the Northeast, Midwest, and West.
Lawrence Yun | Chief Economist, National Association of Realtors
“The housing sector is not out of the woods yet,” NAR Chief Economist Lawrence Yun said in a prepared statement. “After several months of positive signs in pending and contracted contracts, new contract numbers in December weighed on the near-term outlook.”
“Even considering typical seasonal patterns, interpreting in-person home hunting activity in the winter, especially in December, can be difficult due to holidays, people taking vacations, and winter weather conditions,” he added. “We will be monitoring the data over the coming months to determine whether the soft signings were a one-month anomaly or the start of an underlying trend.”
Hannah Jones, senior economic research analyst at Realtor.com, said December’s drop in pending sales reflected continued consumer concerns about affordability and economic and labor market uncertainty. Jones said lower mortgage rates are not enough to offset these concerns, but he said the slump could continue into 2026.
“Mortgage rates fell to their lowest levels of the year in December, easing some affordability, but a lack of new listings dampened buyer enthusiasm,” he said in an emailed statement. “Available inventory increased 12.1% year over year, but new listings decreased 1.8%, leaving buyers with fewer new options to choose from.”
He added: “December’s pending statistics suggest a slow start to the year in terms of home sales.” “While mortgage rate easing and gradual improvements in supply have provided some support, the housing market remains depressed and buyer and seller activity remains subdued.”
Lisa Sturtevant, chief economist at Bright MLS, echoed similar sentiments in her analysis, saying homebuying activity could pick up in the spring.
“[Wednesday’s] “This indicates that many other investors are taking a wait-and-see attitude to see if market conditions become more favorable in 2026. Buyers looking to enter the market this year will typically find more inventory and have more opportunities to negotiate price and concessions,” he said. Sellers who want a quick sale need to price their home appropriately to tempt financially anxious buyers. ”
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