U.S. pending home sales rose 12.1 percent year over year during the four weeks ending November 24, the biggest increase since May 2021. That’s according to a new report from Redfin (redfin.com), 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 said it will gain a better idea 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 percent week-over-week on Nov. 24, 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 same week, though it’s up 7 percent 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 percent 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, Redfin said.