NAR Pending Home Sales Report Reveals 1.8% Increase in May

Pending home sales increased by 1.8% in May from the prior month and 1.1% year-over-year, according to the National Association of REALTORS® Pending Home Sales report. All four U.S. regions experienced month-over-month increases – most notably the West. Year-over-year, contract signings rose in the Midwest and South, while they fell in the Northeast and West. This report equips real estate professionals who are REALTORS® with valuable information that helps them serve their clients and get to their next transaction.

"Consistent job gains and rising wages are modestly helping the housing market," said NAR Chief Economist Lawrence 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."

Regarding regional differences, Yun added, "The Northeast's housing shortage is boosting home prices, with more than a quarter of homes selling above list price. Conversely, more inventory in the South gives home buyers greater negotiation power. Price declines in the South should be considered temporary given the region's strong job creation."

MAY 2025 NATIONAL SNAPSHOT

May 2025 Pending Home Sales
1.1% year-over-year increase

MAY 2025 REGIONAL SNAPSHOT

Northeast

2.1% month-over-month increase
0.5% year-over-year decrease

Midwest

0.3% month-over-month increase
2.6% year-over-year increase

South

1.0% month-over-month increase
2.0% year-over-year increase

West

6.0% month-over-month increase
1.2% year-over-year decrease

The percent of change in pending home sales is based on the Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on home-contract signings. An index of 100 is equal to the level of contract activity in 2001.

About the National Association of REALTORS®

The National Association of REALTORS® is involved in all aspects of residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor.