Pending home sales in the U.S. saw a sharp decline in December, dropping by 9.3%, the largest fall since the onset of the COVID-19 pandemic. This unexpected slump has dampened the outlook for 2026, raising concerns about the overall health of the housing market. Limited listings and elevated prices are reportedly contributing to the slowdown, with particularly steep drops observed in the Midwest. Analysts note that this downturn casts a shadow over recovery efforts, which had previously shown resilience in some areas.