2026.01.2115:14:49UTC+00US Pending Home Sales Plunge in December

In December 2025, US pending home sales experienced a significant decline, plummeting by 9.3% compared to the previous month. This represents the largest drop since April 2020 and reverses the 3.3% gain observed in November, far surpassing market forecasts, which anticipated a modest 0.3% decrease. This downturn concluded a four-month period of growth and matches the steepest decline not seen since the onset of the pandemic, highlighting the ongoing pressures on the US housing market. Reductions were seen in all four regions, with the Midwest experiencing the largest decline at -14.9%, followed by the West at -13.3%, the Northeast at -11.0%, and the South at -4.0%. On an annual basis, pending home sales decreased by 3.0%. Lawrence Yun, Chief Economist at the National Association of Realtors, commented on the data, noting that although home closures increased in December, the rate of new listings did not match this rise, resulting in reduced inventory. This scarcity likely contributed to buyer reluctance, which in turn led to the downturn in pending home sales.