By Joshua Kirby
The number of houses going under contract rose by more than expected in December as the U.S. housing market limbers up for a strong start to the year. Here are the main takeaways from the National Association of Realtors' report released Friday:
--The pending home sales index, a leading, forward-looking indicator of home sales based on contract signings, rose 8.3% to 77.3 in December compared with a month earlier. A reading of 100 is equal to the level of contract activity in 2001.
--November's indicator was revised down a little to 71.4 from 71.6.
--Economists polled by The Wall Street Journal had expected the index to rise less sharply, by 2.0%.
--The news signals a buoyant start to 2024 for the housing market as mortgage rates ease and home prices remain stable, said Lawrence Yun, NAR chief economist. "Job additions and income growth will further help with housing affordability, but increased supply will be essential to satisfying all potential demand," Yun said.
--Three of four regional divisions showed a rising sales index in December, with the West surging 14% and the South and Midwest also booking increases. The Northeast was the sole region to register a decline.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
01-26-24 1014ET
