Pending home sales are pulling through the end of 2025 with a strong performance, rising both monthly and yearly due to what experts say is some market stabilization, according to the latest data from the National Association of Realtors® (NAR).
NAR’s Pending Home Sales report for November found that sales rose 3.3% month-over-month, up from the 1.9% increase seen in October. Sales also rose 2.6% year-over-year, a reverse of course from the 0.4% fall seen last month.
Looking regionally, pending home sales rose month-over-month and year-over-year across the board. The Northeast saw sales rise 1.8% monthly and yearly, the Midwest was up 1.3% monthly and 2.2% yearly, the South was up 2.4% monthly and 3.3% yearly, and the West was up a staggering 9.2% monthly and 2.4% yearly.
The November readings are the “strongest performance of the year” and “the best performance in nearly three years, dating back to February 2023,” according to NAR Chief Economist Lawrence Yun.
NAR is forecasting a significant increase in total home sales next year, higher than many other housing economists, as 2026 remains an enigma due to broader macroeconomic uncertainty.
Yun pointed to an increase in “homebuyer momentum” as the reason for the rise in pending sales.
“Improving housing affordability—driven by lower mortgage rates and wage growth rising faster than home prices—is helping buyers test the market,” he continued. “More inventory choices compared to last year are also attracting more buyers to the market.”
In that vein, November’s REALTORS® Confidence Index survey found that 22% of NAR members expect an increase in buyer traffic over the next three months, up from 17% in October and down from 24% one year ago. Additionally, 18% expect an increase in seller traffic, up from 16% last month and down from 22% in November 2024.
Realtor.com® Senior Economic Research Analyst Hannah Jones noted that as pending home sales are the “first formal step in the home-buying process,” the data is a “useful indicator of near-term market activity.”
“September’s flat pending home sales translated into a modest uptick in existing-home sales in November, though both measures remain below year-ago levels,” she continued. “This recent momentum reflects the combined effects of easing mortgage rates and gradually improving supply. Still, despite these tailwinds, the housing market remains in a low gear, with both buyer and seller activity subdued.”
