November Brings Unexpected Momentum to U.S. Housing Market as Pending Home Sales Jump

The National Association of Realtors unveiled striking data this November, revealing that pending home sales in the United States have accelerated far beyond market expectations. The pending home sales index climbed to 79.2, representing a 3.3 percent increase for the month—nearly four times the 0.8 percent gain analysts had anticipated. This robust performance built upon October’s already impressive 2.4 percent monthly climb, when the index reached 76.7 after upward revision.

Regional Strength Drives the November Surge

Geographic analysis reveals where this month’s momentum originates. The Western region demonstrated particularly remarkable performance, with pending home sales advancing 9.2 percent. The South followed with a 2.4 percent increase, while the Northeast and Midwest contributed gains of 1.8 percent and 1.3 percent respectively. This broad-based regional strength suggests the market rally extends across diverse U.S. markets rather than concentrating in isolated areas.

What Homebuyers and Industry Experts Are Seeing

Lawrence Yun, Chief Economist at NAR, characterized the November results as the year’s strongest seasonal performance and the best recorded in nearly three years, dating back to February 2023. He attributed this month’s resilience to multiple converging factors: improving housing affordability driven by lower mortgage rates, wage growth outpacing home price increases, and expanded inventory selections compared to prior year levels.

These conditions have effectively drawn more participants into the market. The REALTORS Confidence Index survey from November showed 22 percent of NAR members expect increasing buyer traffic over the coming three months—a rise from October’s 17 percent, though down slightly from 24 percent one year earlier. Seller traffic expectations also shifted, with 18 percent of members anticipating increases, up from 16 percent the previous month but below November 2024’s 22 percent reading.

Understanding pending home sales data remains crucial for market observers: these represent contracts signed but not yet closed, typically requiring four to six weeks to complete the transaction process from signature to final closing.