US Pending Home Rise More than Expected

US pending home sales fell sharply by 9.3% month over month in December 2025, the biggest drop since April 2020, reversing a 3.3% increase in November and far exceeding market expectations for a modest 0.3% decline. The decline ended a four-month streak of gains and marked the steepest drop since April 2020, when the pandemic first hit demand, underscoring that the US housing market remains under pressure. Declines were recorded across all four regions, led by the Midwest (-14.9%) and the West (-13.3%), followed by the Northeast (-11.0%) and the South (-4.0%). On a year-over-year basis, pending home sales were down 3.0%. Commenting on the data, NAR Chief Economist Lawrence Yun said that although home closings rose in December, new listings did not keep up, pushing inventory lower. With fewer homes available, buyers were less willing to commit, likely contributing to the drop in pending home sales.

US pending home sales rose by 3.3% from the previous month in November of 2025, picking up from the upwardly revised 2.4% increase from October and ahead of expectations of a 1% gain, to reflect a fourth consecutive increase in pending home sales. Growth was consistent in all areas of the country, including the West (9.2%), the South (2.4%), the Northeast (1.8%), and the Midwest (1.3%). "Homebuyer momentum is building. The data shows the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years, dating back to February 2023," said NAR Chief Economist Lawrence Yun. "Improving housing affordability–driven by lower mortgage rates and wage growth rising faster than home prices–is helping buyers test the market. More inventory choices compared to last year are also attracting more buyers to the market."

US pending home sales rose by 1.9% from the previous month in October of 2025, gaining traction from the revised 0.1% increase in the previous month and well above the preliminary estimate of a 0.5% gain. The increase was consistent in all areas of the country, including the Midwest (5.3%), Northeast (2.3%), South (1.4%), and West (1.5%). "The Midwest shined above other regions due to better affordability, while contract signings retreated in the more expensive West region," said NAR Chief Economist Lawrence Yun. "Days on the market typically lengthen from November through February, providing better negotiating power to buyers during the holiday season. Job gains in September, following the data blackout, are reassuring and suggest the economy is not slipping into a recession. This may boost confidence in future homebuying."