Real estate professionals are drafting more purchase contracts as pending home sales surge to a 21-month high. Read more from NAR’s latest housing report.
 

After home sales hit a 15-month low in summer, the housing market has been shifting toward the rosy real estate outlook economists are predicting for 2025.

In a recent sign of improvement, pending home sales rose 2.2% in November. This measure looks at future home sales based on contract signings. The National Association of REALTORS® shared this report. Contract signings have increased for the fourth month in a row. They are up nearly 7% from last year. This is the highest level since February 2023.

"Consumers seem to have changed their expectations about mortgage rates. NAR Chief Economist Lawrence Yun says that more homes are for sale now. He also notes that mortgage rates have been over 6% for the past 24 months. Buyers are no longer waiting for or expecting mortgage rates to fall substantially. Furthermore, buyers are in a better position to negotiate as the market shifts away from a seller’s market.”

Several recent housing indicators have painted a healthier picture of the market:

  • Existing-home sales jumped 5% annually in November.
  • The median home price has climbed 4.7% year over year.
  • The number of existing homes on the market is up nearly 18% from a year ago.
  • New-home construction for single-family homes rose 7% annually in November.

Yun says, “Some markets will do better. This is mainly due to local job growth and new inventory supply.”

In November, contract signings increased each year in all four major U.S. regions. Three of these regions saw a monthly rise. The South saw the most notable monthly increase, with pending home sales up 5.2%. The Northeast was the only region to post a decline, with pending home sales falling 1.3% month over month. However, contract signings are still up in the region by nearly 6% compared to a year ago, NAR’s report shows.

What’s in Store for 2025?

Leading economists recently shared their 2025 housing market forecasts. They also discussed the markets likely to see the biggest sales increases. This happened during NAR’s Real Estate Forecast Summit.