Pending Home Sales Plunge 9.3% in December, Signaling Housing Market Slowdown
Event summary
- Pending home sales dropped 9.3% month-over-month and 3.0% year-over-year in December 2025, per NAR data.
- All four U.S. regions saw month-over-month declines, with the Midwest (-14.9%) and West (-13.3%) hit hardest.
- Inventory hit a low of 1.18 million homes, matching the lowest level of 2025.
- Median time on market increased to 39 days, up from 36 days in November.
- 10 major metro areas, including Louisville and San Antonio, bucked the trend with year-over-year gains.
The big picture
The December decline in pending home sales suggests the housing market may be facing renewed headwinds after a period of stabilization. The drop in inventory and increased time on market indicate potential challenges for both buyers and sellers. The performance of specific metro areas highlights regional variations that could signal shifting demand patterns. Investors and operators should monitor whether this downturn is a seasonal anomaly or the start of a longer-term trend.
What we're watching
- Inventory Constraints
- Whether low inventory levels will persist and continue to dampen buyer enthusiasm.
- Regional Disparities
- How the performance of certain metro areas will evolve compared to national trends.
- Economic Indicators
- The pace at which broader economic factors, such as interest rates, will impact housing demand.
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