Pending home sales in the United States fell by 0.8% in June compared to May, and dropped 2.8% from the same period last year, according to a report released by the National Association of Realtors (NAR) on July 30, 2025. The data tracks homes under contract that have not yet closed, serving as an early indicator for future housing market activity.
Regionally, the Northeast saw a 2.1% increase in pending sales month-over-month, while remaining unchanged year-over-year. In contrast, the Midwest experienced a 0.8% decrease from May and a 0.9% decline compared to June 2024. The South recorded a 0.7% drop month-over-month and a 2.9% fall year-over-year. The West showed the largest declines with a 3.9% decrease from May and a 7.3% drop compared to last year.
The REALTORS Confidence Index revealed an uptick in market engagement, showing a 4% rise in homebuyer traffic and a 6% increase in seller traffic over the past year.
Lawrence Yun, NAR Chief Economist, stated: "The data shows a continuation of small declines in contract signings despite inventory in the market increasing. Pending sales in the Northeast increased incrementally even though home price growth in the region has been the strongest in the country."
Yun added: "The REALTORS Confidence Index shows early indications of potential contract signings increasing moving forward. REALTORS are optimistic that homebuying and selling activity will increase. That confidence is supported by the fact that mortgage applications have been rising."
The Pending Home Sales Index (PHSI), which measures signed contracts for existing homes but not yet completed transactions, uses an index value of 100 to represent contract activity levels seen in 2001—a benchmark considered normal for current U.S. population levels.
NAR notes that variations between pending contracts and finalized sales can occur due to issues such as mortgage financing challenges or problems identified during inspections or appraisals.
Existing-home sales data for July is scheduled for release on August 21, with the next update on pending home sales set for August 28 at facts.realtor.
