Kevin Sears President | Official website
Pending home sales in the United States increased by 3.3% in November compared to the previous month, and by 2.6% year over year, according to the National Association of REALTORS (NAR) Pending Home Sales Report released on December 29, 2025. The report tracks the number of homes under contract but not yet closed, providing insight into future housing market activity.
All four major regions—the Northeast, Midwest, South, and West—recorded gains both month over month and year over year. In November, pending home sales rose by 1.8% in the Northeast and Midwest from October levels, while the South saw a 2.4% increase and the West experienced a significant 9.2% jump.
The NAR’s REALTORS Confidence Index survey found that expectations for buyer traffic are rising among real estate professionals. According to the survey, "22% of NAR members expect an increase in buyer traffic over the next three months, up from 17% in October and down from 24% one year ago." Additionally, "18% expect an increase in seller traffic, up from 16% last month and down from 22% in November 2024."
NAR Chief Economist Lawrence Yun commented on the recent data: "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," Yun said. "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."
The Pending Home Sales Index (PHSI), which measures contract signings as a forward-looking indicator for existing-home sales, uses an index value of 100 to represent contract activity at its average level during 2001—a benchmark considered normal for current U.S. population trends.
According to NAR’s methodology notes, pending contracts serve as early indicators for upcoming completed sales transactions; however, there can be variations between when a contract is signed and when a sale closes due to factors such as financing or inspection issues.
The National Association of REALTORS represents professionals involved in residential and commercial real estate across the country. For consumer resources on buying or selling homes—including guides on written agreements and negotiating compensation—visit facts.realtor.
Existing-Home Sales data for December will be released on January 14; the next Pending Home Sales Index is scheduled for release on January 21 at 10 a.m. Eastern Time.
