Pending home sales exhibited notable strength in November 2025, with contract signings rising 3.3% month-over-month from October, and 2.6 year-over-year from November 2024, according to the latest National Association of Realtors (NAR) Pending Home Sales Report. The data, which tracks signed purchase agreements on existing homes, signals growing buyer activity across the nation.
The gains were broad-based, with all four U.S. regions reporting month-over-month growth. The West led with a 9.2% increase, followed by the South (2.4%), Northeast (1.8%), and Midwest (1.3%). On a year-over-year basis, the South also posted the strongest regional annual gain at 3.3%, while the Northeast recorded a 1.8% increase.
"Homebuyer momentum is building. The data shows the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years, dating back to February 2023," said NAR Chief Economist Lawrence Yun.
"Improving housing affordability – driven by lower mortgage rates and wage growth rising faster than home prices – is helping buyers test the market. More inventory choices compared to last year are also attracting more buyers to the market."
The November Realtors Confidence Index survey reflected rising optimism among practitioners: 22% of respondents expect buyer traffic to increase over the next three months, up from 17% in October. Seller traffic expectations also ticked up, with 18% anticipating increased activity, compared with 16% last month.
As a forward-looking indicator, the Pending Home Sales Index (PHSI) offers insight into future closings of existing-home sales, which typically occur one to two months after contracts are signed. The stronger contract activity underscores a potentially stabilizing housing market heading into 2026, reflecting buyer responsiveness to a more favorable borrowing environment and expanded choices in available homes.
“As we look to 2026, we believe sales activity next year will continue to be shaped more by ‘life happens’ moments — job changes, marriages, births, and other personal milestones — than by falling mortgage rates," said First American Senior Economist Sam Williamson. "With affordability still stretched and inventory tight in many regions, the recent pullback in rates and cooling price growth have helped stabilize the landscape. These shifts offer a clearer path for buyers and sellers as 2026 approaches, setting the stage for a more constructive year ahead.”
