Pending home sales in December decreased by 9.3% from the prior month and 3% year-over-year, according to the National Association of Realtors®’ (NAR) Pending Home Sales Report. The report provides the real estate ecosystem—including agents and homebuyers and sellers—with data on the level of home sales under contract.
Month-over-month pending home sales declined in all four regions. Year-over-year pending home sales rose in the South and declined in the Northeast, Midwest and West.
“The housing sector is not out of the woods yet,” said NAR Chief Economist Lawrence Yun. “After several months of encouraging signs in pending contracts and closed sales, the December new contract figures have dampened the short-term outlook.”
“Even after accounting for typical seasonal patterns, interpreting in-person home search activity in the winter—especially in December—can be tricky due to public holidays, people taking time off and wintry weather conditions,” Yun added. “We’ll be watching the data in the coming months to determine whether the soft contract signings were a one-month aberration or the start of an underlying trend.
“Data shows closing activity increased in December,” continued Yun. “However, new listings did not keep pace so inventory decreased. Consumers prefer seeing abundant inventory before making the major decision of purchasing a home. So, the decline in pending home sales could be a result of dampened consumer enthusiasm about buying a home when there are so few options listed for sale. In December there were only 1.18 million homes on the market—matching the lowest inventory level of 2025.”
December 2025 Regional Pending Home Sales
Northeast
- 11.0% decrease month-over-month
- 3.6% decrease year-over-year
Midwest
- 14.9% decrease month-over-month
- 9.8% decrease year-over-year
South
- 4.0% decrease month-over-month
- 2.0% increase year-over-year
West
- 13.3% decrease month-over-month
- 5.1% decrease year-over-year
“The report showed that new contract activity was down in December, falling year-over-year in all regions of the country,” said Bright MLS Chief Economist Lisa Sturtevant. “A drop in mortgage rates and growing inventory brought out some buyers at the end of the year, but today’s report shows that many others are taking a wait-and-see approach to see if market conditions become more favorable in 2026.
“Lower mortgage rates are helping to improve affordability in the year ahead, but economic uncertainty is holding some prospective buyers back. A nationwide survey conducted by Bright MLS showed that the majority of Americans are feeling worried about their personal financial situations,” Sturtevant added. “Buyers looking to get into the market this year will generally find more inventory and greater opportunities to negotiate on price and concessions. Sellers wanting a quick sale will need to price appropriately to entice economically anxious buyers.”
Realtor.com® Senior Economic Research Analyst Hannah Jones noted that after several months of solid pending home sales performance, December’s drop highlights the crosscurrents shaping today’s housing market.
“Although mortgage rates have eased from recent highs, roughly 80% of mortgage holders still have a rate below 6%, making the prospect of trading in a low-rate mortgage for a higher one both costly and unappealing,” she said. “At the same time, home prices remained near record highs, and ongoing economic and labor market uncertainty has encouraged some would-be buyers to pause or wait for clearer signals in the new year.
“December’s pending data suggests a slow start to the year in terms of home sales. While easing mortgage rates and gradually improving supply have provided some support, the housing market remains in a low gear, with both buyer and seller activity still subdued.”
