Kevin Sears President | Official website
Pending home sales increased by 1.8 percent in February compared to the previous month and declined by 0.8 percent year over year, according to a March 17 report from the National Association of Realtors.
The report is significant for real estate professionals and consumers as it provides early insight into trends in the housing market, indicating potential shifts in buying activity and affordability across different regions.
Month-over-month gains were recorded in the Midwest, South, and West, while the Northeast saw a decline. Year over year, pending home sales rose in the South and West but fell in the Northeast and Midwest. Dr. Lawrence Yun, chief economist at the National Association of Realtors, said, “The slight gain in pending contracts appears to be driven by improved affordability conditions. However, those conditions could reverse if higher oil prices lead to an uptick in mortgage rates.” Yun also noted regional differences: “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.”
Yun added that first-time buyers face challenges such as building credit and saving for down payments: “For first-time homebuyers, purchasing a home is not a snap decision. 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 6 million more jobs in the country than in the pre-COVID period.”
Regionally for February 2026, pending sales decreased by 3.6 percent month over month and 12.1 percent year over year in the Northeast; increased by 4.6 percent month over month but slipped by 0.1 percent year over year in the Midwest; rose by 2.7 percent month over month and 1.2 percent year over year in the South; and grew by 0.9 percent month over month with a 3.2 percent increase year over year in the West.
Among major metropolitan areas showing notable annual increases were San Diego–Chula Vista–Carlsbad (13.5%), Jacksonville (12.1%), San Jose–Sunnyvale–Santa Clara (10.6%), Denver–Aurora–Centennial (10.5%), Miami–Fort Lauderdale–West Palm Beach (10%), Phoenix–Mesa–Chandler (9.8%), Sacramento–Roseville–Folsom (9.3%), Kansas City (8.7%), Austin–Round Rock–San Marcos (8.1%), and Oklahoma City (8.7%).
According to the official website, the National Association of Realtors supports diversity and inclusion within its profession and encompasses around 1,200 local boards along with 54 state and territorial associations nationwide. The association works to empower real estate professionals to preserve property rights, delivers resources including research data and advocacy, functions as a leading trade group for real estate, and maintains headquarters in Chicago with an additional office located in Washington D.C.
Looking ahead, existing-home sales data for March will be released on April 13 while next month's Pending Home Sales Index is scheduled for April 21.
