by However, activity rose 1.8% from January, suggesting that closings could pick up in the next 30-60 days
WASHINGTON — The National Association of Realtors reported this week that pending home sales declined .8% from February 2025, while increasing 1.8% from January.
Pending home sales reflect the level of homes under contract, offering an indication of what type of actual activity to expect in the following 30 to 60 days that a closing typically occurs.
The NAR said that year-over-year pending sales activity rose in the South and West but declined in the Northeast and Midwest regions of the country. Meanwhile month over month pending sales activity rose in the Midwest, South and West, but declined in the Northeast.
NAR Chief Economist Lawrence Yun said that the slight gain from January could be an indication of improving affordability.
“However, those conditions could reverse if higher oil prices lead to an uptick in mortgage rates,” Yun said. “The Midwest—the most affordable region of the country—was the strongest performer in February. But the Northeast was held back by a combination of higher home prices and a shortage of supply.”
He also noted there are other factors that could impact home purchases now and in the near future.
“For first-time homebuyers, purchasing a home is not a snap decision,” Yun added. “It takes time to build credit, save for a down payment, and fulfill existing rental lease agreements. Still, there is sizable pent-up demand that could be released into the market. Although job gains have been sluggish in recent months, there are still six million more jobs in the country than in the pre-COVID period.”
Home sales typically pick up in the spring months, particularly as consumers take advantage of warmer weather to tour listings in their local market or markets where they may be relocating for a new job. As part of this process many also begin shopping for furniture, searching for new styles and sales events that could spark their interest in a new dining set, living room or bedroom depending on the size and type of home they are looking to buy.
Thus, many savvy retailers approach this season prepared with plenty of product at attractive price points.
By region pending home sales activity was as follows. Note that harsh winter weather conditions in the Northeast and Midwest likely kept many homebuyers from looking at properties during the month of February.
+ In the Northeast, there was a 12.1% decrease year over year and a 3.6% decrease month over month
+ In the Midwest, there was a .1% decrease year over year and a 4.6% increase month over month
+ In the South, there was a 1.2% increase year over year and a 2.7% increase month over month
+ In the West there was a 3.2% increase year over year and a .9% increase month over month
The NAR also identified 10 of the 50 largest metro areas with the largest increases in pending home sales. They were as follows:
- San Diego–Chula Vista–Carlsbad, CA (+13.5%)
- Jacksonville, FL (+12.1%)
- San Jose–Sunnyvale–Santa Clara, CA (+10.6%)
- Denver–Aurora–Centennial, CO (+10.5%)
- Miami–Fort Lauderdale–West Palm Beach, FL (+10.0%)
- Phoenix–Mesa–Chandler, AZ (+9.8%)
- Sacramento–Roseville–Folsom, CA (+9.3%)
- Kansas City, MO-KS (+8.7%)
- Austin–Round Rock–San Marcos, TX (+8.1%)
- Oklahoma City, OK (+8.7%)
