Pending home sales in the U.S. saw modest but encouraging growth in May, signaling resilience in the housing market despite fluctuating mortgage rates. According to the latest data from the National Association of REALTORS® (NAR), the Pending Home Sales Index (PHSI) rose by 1.8% month-over-month and 1.1% year-over-year, providing a much-needed boost of confidence for real estate professionals navigating an evolving landscape.
Month-Over-Month Trends Show Uniform Gains
All four major U.S. regions experienced increases in contract signings from April to May, reflecting broad-based momentum in the market. The most significant gains were recorded in the West, which surged 6.0%, followed by the Northeast at 2.1%, the South at 1.0%, and the Midwest at 0.3%.
This consistent regional growth signals renewed buyer interest as summer begins, and provides REALTORS® with valuable opportunities to re-engage their client bases.
Year-Over-Year Performance: A Mixed Bag
On a year-over-year basis, national pending sales rose 1.1% compared to May 2024. However, the performance varied significantly by region:
-
Midwest: +2.6%
-
South: +2.0%
-
Northeast: -0.5%
-
West: -1.2%
While the Midwest and South are leading in year-over-year growth, the Northeast and West saw slight declines, driven largely by inventory and affordability challenges.
Insights from NAR Chief Economist Lawrence Yun
Dr. Lawrence Yun, NAR’s Chief Economist, pointed to job growth and wage increases as key contributors to the modest rise in pending sales.
“Consistent job gains and rising wages are modestly helping the housing market,” said Yun. “Hourly wages are increasing faster than home prices. However, mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains.”
Yun also highlighted the contrasting conditions in the Northeast and South:
-
In the Northeast, limited inventory is pushing prices up, with over a quarter of homes selling above list price.
-
In the South, greater supply is giving buyers more room to negotiate, and price declines are likely temporary given strong job growth in the region.
What This Means for NCJAR REALTORS®
For members of NCJAR, this report delivers key takeaways:
-
Active markets in the South and Midwest can offer growth opportunities for clients looking to relocate or invest.
-
Buyers in the Northeast may face tighter conditions, so REALTORS® should be prepared to navigate multiple-offer scenarios and support clients through competitive bidding.
-
Ongoing education on mortgage rate trends and affordability tools will help REALTORS® guide clients effectively through decision-making.
Stay Ahead With NCJAR
At NCJAR, we’re committed to equipping our members with the insights and tools necessary to succeed in any market condition. This latest Pending Home Sales report affirms that real estate professionals remain critical navigators in a complex economic environment.
Keep an eye on future updates, leverage our professional development resources, and continue providing expert guidance to your clients as we move through the summer season.
Source: National Association of REALTORS® Pending Home Sales Report, June 26, 2025.
