The National
Association of Realtors (NAR) reported on Thursday its seasonally adjusted
pending home sales index (PHSI) jumped 8.3 per cent
m-o-m to 77.3 in December 2023, following a downwardly revised 0.3 per
cent m-o-m fall (from flat m-o-m)
in November. This was the first increase in the indicator in three months and marked the sharpest rise in pending home sales since June
2020 (+14.9 per cent m-o-m).
Economists had forecast
pending home sales to jump 1.5 per cent m-o-m in December.
On a y-o-y basis,
the index climbed 1.3 per cent after an unrevised 5.2 per cent plunge in November. This represented the first annual gain since May 2021 (+13.6 per cent).
According to
the report, three of four regional
indices demonstrated increases both in m-o-m and y-o-y terms in November. The only
exception was the Northeast PHSI, which recorded a 3.0 per cent m-o-m drop and a
3.9 per
cent y-o-y decline. Meanwhile, the West PHSI demonstrated the largest monthly increase
in December, jumping by 14.0 per cent m-o-m. On a y-o-y basis, the indicator
gauging pending home sales transactions in the West rose by 1.5 per cent. The South
PHSI climbed by 11.9 per cent m-o-m and increased by 1.5 per cent y-o-y. The Midwest
PHSI surged by 5.6 per cent m-o-m and soared by 4.3 per cent y-o-y.
Commenting on
the latest report, Lawrence Yun, NAR’s chief economist, noted that the housing
market is off to a good start this year, as consumers benefit from falling
mortgage rates and stable home prices. “Job additions and income growth will
further help with housing affordability, but increased supply will be essential
to satisfying all potential demand," he added.