A stabilizing trend in the national housing market began to emerge based on pending home sales data released during this period.
The National Association of Realtors reported that the Pending Home Sales Index declined 0.5% in November to 107.0, down from an upwardly revised 107.5 in October. Although the month to month change was modest, the broader year over year comparison showed improvement relative to earlier declines.
Historical Context
This article was originally published during the mid 2000s housing slowdown. The data and commentary reflect housing and economic conditions during that period.
The index remained 11.4% below November 2005 levels. However, earlier in the year the gap was wider. In July, pending sales were 16% lower than the same month in 2005. The narrowing contraction suggested moderation in transaction decline.
Understanding the Pending Home Sales Index
The Pending Home Sales Index tracks contracts signed on existing homes. Because closings typically occur within one to two months, pending sales often lead future transaction data.
An index reading of 100 represents the average contract activity during 2001. During peak expansion years, readings moved above that baseline. As the housing cycle slowed, index levels retreated toward historical norms.
A slowing rate of decline does not confirm a full recovery. Instead, it may indicate that the sharpest phase of transaction contraction has passed and that buyers and sellers are adjusting to new pricing realities.
For broader context on long term price cycles and transaction trends, see our Nashville Housing Market Overview.
Implications for the Nashville Market
While this data reflects national trends, local housing conditions depend on inventory levels, employment stability, and buyer confidence within Middle Tennessee.
Historically, Nashville has demonstrated relative resilience compared to national averages. However, evaluating stabilization requires reviewing regional transaction volume, absorption rates, and median pricing trends alongside national indicators.
