The Pending Home Sales Index (PHSI) gained 2.2 percent in November, advancing to 79, according to the National Association of Realtors (NAR). Year-over-year, pending transactions improved 6.9 percent.

November marked the fourth consecutive month of increases and the highest level since February 2023.

“Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” NAR Chief Economist Lawrence Yun said. “Mortgage rates have averaged above 6 percent for the past 24 months. Buyers are no longer waiting for or expecting mortgage rates to fall substantially. Furthermore, buyers are in a better position to negotiate as the market shifts away from a seller’s market.”

The Midwest, South and West experienced month-over-month gains in transactions, while the Northeast decreased. Year-over-year, contract signings increased in all four regions, with the West leading the pack.

The Northeast PHSI fell 1.3 percent from October to 67.8, up 5.6 percent from November 2023. The Midwest index increased 0.4 percent to 78.1, up 1.6 percent from the previous year. The South PHSI improved 5.2 percent to 94.5, up 8.5 percent year-over-year. The West index rose by 0.5 percent October to 64.3, up 11.8 percent from November 2023.

“It appears that some markets will outperform, driven primarily by local job gains and the flow of new inventory supply,” explained Yun.