NAR Pending Home Sales Report Shows 0.4% Decrease in July

Pending home sales decreased by 0.4% in July from the prior month and rose 0.7% year-over-year, according to the National Association of REALTORS® Pending Home Sales Report. The Report provides the real estate ecosystem, including agents and homebuyers and sellers, with data on the level of home sales under contract. Pending sales declined month-over-month in the Northeast and Midwest, held essentially flat in the South, and rose in the West. Year-over-year, sales decreased in the Northeast and West but increased in the Midwest and South. July’s REALTORS® Confidence Index survey shows that 16% of NAR members expect an increase in buyer traffic over the next three months, unchanged from one year ago. Meanwhile, 21% expect an increase in seller traffic, up from 17% in July 2024. “Even with modest improvements in mortgage rates, housing affordability, and inventory, buyers still remain hesitant,” said NAR Chief Economist Lawrence Yun. “Buying a home is often the most expensive purchase people will make in their lives. This means that going under contract is not a decision homebuyers make quickly. Instead, people take their time to ensure the timing and home are right for them.”  “Rising mortgage applications for home purchase are an early indicator of more serious buyers in the marketplace, though many have not yet committed to a pending contract. The Federal Reserve signaling that they may enact a lower interest rate policy should steadily enlarge the pool of eligible homebuyers in the upcoming months.” July 2025 National Pending Home Sales 0.4% decrease month-over-month 0.7% increase year-over-year July 2025 Regional Pending Home Sales Northeast 0.6% decrease month-over-month 0.6% decrease year-over-year Midwest 4.0% decrease month-over-month 1.3% increase year-over-year South 0.1% decrease month-over-month 1.8% increase year-over-year West 3.7% increase month-over-month 1.9% decrease year-over-year The percent of change in pending home sales is based on the Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on home-contract signings. An index of 100 is equal to the level of contract activity in 2001.