Pending home sales dropped in December 2021, marking two straight months of declines, the National Association of Realtors reported. All four major U.S. regions posted month-over-month and year-over-year declines in contract activity.
The Pending Home Sales Index, which tracks home sales based on contract signings, fell 3.8% to 117.7 in December. Year-over-year transactions dropped 6.9%.
An index of 100 is equal to the level of contract signing in 2001.
“Pending home sales faded toward the end of 2021, as a diminished housing supply offered consumers very few options,” said NAR’s chief economist Lawrence Yun. “Mortgage rates have climbed steadily the last several weeks, which, unfortunately, will ultimately push aside marginal buyers.”
Even with December’s slowdown in transactions, Yun said 2021 was an overall strong period for housing in terms of sales and price appreciation.