WASHINGTON (April 30, 2025) – National housing market activity picked up in March, with pending home sales rising 6.1% from the previous month — the strongest monthly gain since December 2023. According to the latest data from the National Association of REALTORS® (NAR), this momentum signals increased confidence and activity among buyers heading into the spring season.
However, the picture was not uniform across the country. While the South led the surge with notable increases, the Northeast region experienced a modest decline, emphasizing the need for local market awareness among real estate professionals.
Understanding the March Numbers
NAR’s Pending Home Sales Index (PHSI) — a leading indicator of housing activity based on contract signings — climbed to 76.5 in March. While this marks a strong 6.1% gain month-over-month, pending transactions were still down 0.6% year-over-year.
“Home buyers are acutely sensitive to even minor fluctuations in mortgage rates,” said NAR Chief Economist Lawrence Yun. “The solid rise in pending home sales implies a sizable build-up of potential home buyers, fueled by ongoing job growth.”
This uptick in demand was partly fueled by a decline in mortgage rates, which averaged 6.65% in March, compared to 6.96% in January and 6.84% in February.
Regional Breakdown: Northeast Lags Behind
Here’s how the pending sales data shaped up by region:
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Northeast:
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Month-over-month: ▼ 0.5%
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Year-over-year: ▼ 3.0%
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Current Index: 62.5
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Midwest:
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Month-over-month: ▲ 4.9%
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Year-over-year: ▲ 1.4%
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Current Index: 77.7
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South:
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Month-over-month: ▲ 9.8%
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Year-over-year: ▼ 0.4%
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Current Index: 94.1
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West:
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Month-over-month: ▲ 4.8%
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Year-over-year: ▼ 2.0%
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Current Index: 58.6
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The Northeast was the only region to post a monthly decline, emphasizing the need for NCJAR members to remain agile and hyper-focused on local market dynamics.
Spring Market Momentum & Inventory Growth
Spring typically brings an increase in market activity, and March followed that trend. NAR reported a 34.1% jump in signed contracts from February, based on raw (non-seasonally adjusted) data — reflecting the usual springtime surge.
Additionally, inventory levels rose 8.1% from February, potentially offering more options for buyers and easing some of the constraints seen in previous months.
“This is a pattern consistent with previous years,” said Yun. “Inventory growth and buyer demand are helping to create a more dynamic housing-market environment.”
Takeaways for NCJAR Members
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While the national market shows signs of growth, Northeast REALTORS® must navigate a more nuanced landscape.
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With mortgage rates stabilizing and buyer interest rebounding, the spring season may offer new opportunities to connect motivated buyers with fresh inventory.
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Staying informed and proactive is key — especially in a shifting environment where regional trends may diverge from national ones.
For more resources and guides tailored to REALTORS®, visit facts.realtor.
