Pending home sales across the United States grew 3.3 percent in November, reaching the highest level in nearly three years, according to a Dec. 29 report from the National Association of Realtors (NAR). This marks the fourth consecutive month of sales growth.

“Homebuyer momentum is building. The data show the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years, dating back to February 2023,” Lawrence Yun, the NAR’s chief economist, said in the report.

“Improving housing affordability—driven by lower mortgage rates and wage growth rising faster than home prices—is helping buyers test the market,” Yun said, adding that additional inventory is also attracting more buyers to the market.

Year over year, pending sales rose 2.6 percent nationally in November.

Sales increased in all regions of the country, with the West leading at 9.2 percent month over month. The South recorded a 2.4 percent hike, followed by the Northeast at 1.8 percent and Midwest at 1.3 percent.

The South took the top spot for year-over-year pending sales increases at 3.3 percent. In the West, pending sales grew by 2.4 percent, and 2.2 percent in the Midwest. The Northeast showed the lowest year-over-year growth at just 1.8 percent.

According to the NAR, the pending home sales index is a leading indicator for the housing market and is based on pending sales of existing homes throughout the country. A sale is considered “pending” when the contract has been signed, but the transaction has not yet closed.

Meanwhile, the NAR’s Realtors Confidence Index survey indicated that days on the market increased to 36 days, while the number of offers received remained flat at 2.2. More than 18 percent of homes sold above the asking price, and 27 percent of buyers engaged in all-cash deals.

First-time buyers represented 30 percent of buyers in November, down slightly from 32 percent in October and unchanged from November last year. Nearly 18 percent of homes were purchased for non-primary residence use—up from 16 percent in October and 13 percent a year ago. Just 2 percent of sales were distressed, and 5 percent were for vacation use.

Six percent of buyers purchased properties based on only a virtual tour without physically seeing the home. This remains virtually unchanged from 5 percent one month ago and 5 percent one year ago.

Contracts are typically closed within 30 days, with only 6 percent of them terminated in the last three months. Just 15 percent experienced delayed settlements.

More than 22 percent of NAR members expect to see an increase in buyer traffic over the next three months—a slight uptick from just 17 percent in October, and down from 24 percent one year ago. More than 18 percent said they expect an increase in seller traffic during the same time period, representing a small uptick from 16 percent last month, but down from 22 percent in November 2024.