Contracts to sell existing single-family houses and condos took a big leap forward in November, jumping 3.3% from the previous month to the highest level since early 2023.

It’s the latest indication that despite stubbornly high mortgage rates and prices, homebuyers are feeling some momentum, the National Association of Realtors said Monday as it reported its monthly index of pending sales. Contracts, which tend to precede actual sales by a couple of months, were also up 2.6% from one year earlier.

“This is the strongest reading since February 2023 and the strongest November reading since 2021,” said Homes.com chief residential economist Brad Case. “The homebuying market has been in the doldrums since 2022, and this tells me that we're coming out of that slump. Sellers are putting more homes on the market with reasonable price expectations, and buyers are more comfortable making deals at current interest rates. I expect to see more reports like this in the year ahead.”

All four U.S. regions saw gains in pending sales from the previous month and one year ago:

Going forward, many experts think existing-home sales will continue a gradual upswing in 2026. The average rate for a 30-year, fixed-rate mortgage declined significantly earlier this year toward 6%, but has remained fairly stable in recent weeks. The increase in the supply of homes coming on the market has also moderated somewhat, but conditions are generally becoming more favorable for buyers.

"With inventory rising slowly and affordability remaining constrained, transactions are likely to grind higher as life events continue to drive housing decisions, rather than rebound sharply as 2026 unfolds," Odeta Kushi, deputy chief economist for financial services firm First American, told Homes.com recently.

“Improving housing affordability — driven by lower mortgage rates and wage growth rising faster than home prices — is helping buyers test the market,” NAR chief economist Lawrence Yun said in a statement. “More inventory choices compared to last year are also attracting more buyers to the market.”

Twenty-two percent of agents polled in the NAR’s most recent Realtors Confidence Index Survey predicted an increase in buyer traffic over the next three months, up from 17% in October but down from 24% a year earlier. Somewhat fewer agents said they expected a rise in seller activity, however.

Original Article By David Holtzman, Homes.com