Let’s take a deep dive on what’s happening in US housing market.

Key Points

Pending home sales dropped 9.3% month over month, according to the National Association of Realtors. Analysts were expecting a slight gain.
Sales fell month to month in all regions of U.S. and were higher annually only in the South.
There were just 1.18 million homes on the market in December, down 9% from November, and matching the lowest inventory level of 2025.

Stagnant mortgage rates, falling housing supply and ongoing economic uncertainty weighed heavily on homebuyers in December.

Pending home sales, a measure of signed contracts on existing homes, dropped 9.3% last month from November, according to the National Association of Realtors. Analysts were expecting a slight gain.

Sales were 3% lower than December 2024.