US pending home sales rise in December 2022 to end 6-month decline

By Ovunc Kutlu

ISTANBUL (AA) – US pending home sales rose 2.5% in December 2022, ending six consecutive months of decline, according to data released by the National Association of Realtors (NAR) on Friday.

The index of pending home sales climbed to 76.9 last month, improving for the first time since May last year. The 73.9 figure in November was the second-lowest monthly reading in 20 years.

While pending home sales was expected to decline 0.9% in December, they plummeted 2.6% in November.

Pending home sales transactions, however, dropped 33.8% year-on-year, according to a NAR statement.

"This recent low point in home sales activity is likely over," said Lawrence Yun, the association’s chief economist. "Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market."

Yun added that job gains will steadily become important in driving local home sales markets.

Pending home sales measure the change in the number of houses under contract to be sold, but still awaiting the closing transaction. They exclude new home construction.