by However, some metro areas performed extremely well, suggesting retailers in those regions could end up selling a lot of furniture in the next month or two as home sales close
WASHINGTON — Pending home sales fell .3% from June 2025 and 5.4% from May according to figures released Thursday from the National Association of Realtors.
The report noted that year-over-year activity rose in the Northeast and Midwest and declined in the South and West while month-over-month activity declined in all four regions.
Officials attributed the results to current mortgage rate levels and current home prices.
“The highest mortgage rates in nearly a year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers,” said NAR Chief Economist Lawrence Yun. “However, job gains can help support housing demand.”
The data reflects contract signings, which occur a month or two before actual closings.
“It is worth emphasizing that it is closing activity, not contract signings, that generates economic impact,” Yun said. “Pending contracts are only suggestive of upcoming closed deals and do not align perfectly, due to fallout rates and contract contingencies.”
By region the activity was as follows:
+ In the Northeast, pending home sales rose 2.2% year over year and declined 3% month-over-month
+ In the Midwest, they rose .3% year over year and declined 8.9% from May.
+ In the South, they declined .9% from June 2025 and declined 4.1% from May.
+ In the West, they declined 1.1% from June 2025 and declined 4.7% from May.
Some local markets outpaced the rest of the country in terms of pending home sales. The top 10 markets that posted year-over-year increases are as follows:
- Virginia Beach-Chesapeake-Norfolk, VA-NC (+15.4%)
- Sacramento-Roseville-Folsom, CA (+15.2%)
- Kansas City, MO-KS (+14.4%)
- Richmond, VA (+14.0%)
- Buffalo-Cheektowaga, NY (+12.1%)
- Austin-Round Rock-San Marcos, TX (+11.1%)
- San Francisco-Oakland-Fremont, CA (+10.7%)
- Los Angeles-Long Beach-Anaheim, CA (+9.6%)
- Miami-Fort Lauderdale-West Palm Beach, FL (+9.5%)
- St. Louis, MO-IL (+9.1%)
The data suggests that furniture retailers in these areas can expect robust sales activity in the next month or two as many consumers shop for furniture as they are getting ready to purchase a home. Thus the remainder of summer could be a time to market to these consumers with promotions that offer aggressive values across categories such as living room, bedroom, dining, outdoor furniture and bedding.
