In August, the number of homes with signed contracts jumped 4.0 percent from July and rose 3.8 percent relative to a year ago — a promising indicator for closing home sales ahead. Regional gains were strong in the Midwest, South, and West, though the Northeast lagged. (National Association of REALTORS®, 2025)

What the Latest Figures Reveal

According to the National Association of REALTORS®, pending home sales in August rose 4.0 percent month-over-month and increased 3.8 percent year-over-year. The rise was broad based: the Midwest posted an 8.7 percent monthly gain, the West saw 5.0 percent growth, and the South rose 3.1 percent; only the Northeast slipped slightly (–1.1 percent) month to month. The REALTORS® Confidence Index reflected a modest bump in optimism — 19 percent of members now expect increased buyer traffic in the coming three months. 

Why This Matters & What to Watch

Pending sales—contracts signed but not yet closed—tend to foreshadow existing home sales in the following months, making them a useful forward-looking gauge. The uptick suggests more momentum returning to the housing market, likely buoyed by somewhat lower mortgage rates that encourage buyer participation. 

However, the strength of these gains is regionally uneven, and they may collide with headwinds like constrained inventory, tighter lending standards, or a weakening labor market. The Northeast’s decline signals that even in a national rebound, local market conditions can override broader trends. Agents and buyers should monitor these regional divergences, and be prepared for potential delays in moving from contracts to closings due to appraisal or financing hiccups.

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Source:
National Association of REALTORS®. (2025, September 29). NAR Pending Home Sales Report Shows 4.0% Increase in August. Retrieved from https://www.nar.realtor/newsroom/nar-pending-home-sales-report-shows-4-0-increase-in-august

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