Pending home sales in the U.S. edged downward at the start of 2026, with the latest National Association of Realtors (NAR) Pending Home Sales Report finding a 0.8 % decline in January compared with December, and a modest 0.4 % year‑over‑year decrease.
The Pending Home Sales Index, a forward‑looking indicator based on contracts signed but not yet closed, fell to 70.9 in January, signaling subdued buyer activity heading into the spring season. Contract signings are often viewed as a precursor to existing home sales in the subsequent months.
Regionally, January’s results were uneven, with pending sales rising in the Midwest and West, while contract activity in the Northeast and South declined on a month‑to‑month basis. Year‑over‑year comparisons showed increases in the South and West, but continued weakness in the Northeast and Midwest.
Despite mortgage rates hovering around the low 6 % range in January, affordability challenges and limited inventory have dampened market momentum.
“Unless housing supply increases, these additional potential buyers becoming active in the market could simply push up home prices,” said NAR Chief Economist Dr. Lawrence Yun. “This will put increasing pressure on affordability, which is why it is critical to increase supply by building more homes. Fortunately, the House of Representatives recently passed the Housing for the 21st Century Act with strong bipartisan support, an important signal that addressing the nation’s housing shortage remains a shared priority. The legislation is a meaningful step toward expanding housing supply and removing barriers that make it harder for Americans to achieve homeownership.”
Seasonal factors and winter weather may have contributed to the modest drop in pending contracts, but analysts say that buyers continue to be cautious amid broader economic uncertainties and historically tight housing inventories.
Affordability issues linger for most potential buyers, as doxo’s recently released 2026 U.S. Household Bill Pay Report found that U.S. households are spending a record $5.03 trillion annually on recurring bills, underscoring mounting financial pressure driven largely by housing costs, rising insurance premiums, and essential utilities.
The report found the typical U.S. household pays $39,468 per year — or $3,289 per month — on bills, consuming roughly 47% of annual income. Of that total, $24,997 annually goes toward the 13 most essential household expenses, including housing, auto loans, utilities, and insurance.
