Home Sales Take a Dip: What's Going On?

In December, the housing market experienced a sharp decline in pending home sales. Fewer people signed contracts to buy homes compared to the previous month.

Key Findings

• Decrease of 9.3%: Experts anticipated a slight increase, but instead, there was a significant drop.
• Nationwide Impact: The decline was felt across the U.S., with the South being the only region to see a slight increase compared to the previous year.

Homes Taking Longer to Sell

• Average Days on Market: Homes stayed on the market for 39 days in December, up from 35 days in December 2024.
• Low Inventory: Only 1.18 million homes were available for sale, a 9% drop from November, despite being 12% higher than the previous year.

Mortgage Rates Remain Stable

• 30-Year Fixed Loan Rate: Averaged around 6.25%, slightly lower than summer rates.
• Buyer Hesitation: Even with lower rates, buyers are hesitant due to limited options.

Market Uncertainty

The drop in pending home sales suggests that buyers are waiting for more inventory before making a decision.