U.S. pending home sales rose 12.1% year-over-year during the four weeks ending November 24, the biggest increase since May 2021. That’s according to Redfin, the technology-powered real estate brokerage.
One reason for the outsized increase is that early-stage homebuying demand, including home tours, boomed in the two weeks following the presidential election. But another notable reason is that Redfin is comparing it to a period in 2023 that included Thanksgiving, a time of year when home sales are typically very slow.
Redfin will know in the next few weeks whether the increase in pending sales is a Thanksgiving mirage or a sign of sustained strength in the housing market.
Mortgage purchase applications are up 12% week over week, though home tours and other early-stage signals have tapered off. Redfin’s Homebuyer Demand Index – a measure of tours and other buying services from Redfin agents – fell to its lowest level in over two months during the week ending November 24, though it’s up 7% year over year. The recent dip in early-stage demand follows two weeks of big upswings; the demand index hit its highest level in nearly a year and a half in mid-November.
On the selling side, new listings are up 10.6% year over year, the biggest increase since April. That’s also due partly to the fact that Thanksgiving fell into last year’s comparable period.
