Pending home sales down 0.8% in June, 2.8% below last year

Pending home sales declined 0.8% in June from the previous month and 2.8% compared to June 2024, according to the National Association of Realtors (NAR).

Data comes from the Pending Home Sales Index, a forward-looking indicator based on contract signings.

Month-over-month and year-over-year declines were recorded in the Midwest, South and West. The Northeast saw a 2.1% gain from May but remained unchanged from a year earlier.

“The data shows a continuation of small declines in contract signings despite inventory in the market increasing,” said NAR Chief Economist Lawrence Yun. “Pending sales in the Northeast increased incrementally even though home price growth in the region has been the strongest in the country.

“The Realtors Confidence Index shows early indications of potential contract signings increasing moving forward. Realtors are optimistic that homebuying and selling activity will increase. That confidence is supported by the fact that mortgage applications have been rising.”

Continued stagnation in the market

Bright MLS Chief Economist Lisa Sturtevant responded to the June pending home sales data with a more cautionary outlook — pointing to continued stagnation in the housing market.

“The June pending home sales data provides further evidence of a stuck housing market, increasingly the likelihood that we will end the year with fewer transactions than last year’s 30-year low,” she said.

Sturtevant emphasized that rising mortgage rates alone don’t fully explain the slowdown. While average 30-year fixed rates were slightly lower than this time last year, sales activity failed to improve.

“Affordability is a major challenge for homebuyers right now,” she said. “The median sold price nationally hit a new record high in June and prices of existing homes are now higher than new home prices.

Looking ahead, Sturtevant tempered expectations for a turnaround in the coming months.

“What will it take to jump start the housing market this fall? Unfortunately, there is little to suggest any sort of major rebound in home sales as we head into fall,” she said. “The Federal Reserve has telegraphed no rate cut in July, and even if the central bank cut rates in September, it is likely that mortgage rates will remain in the mid- to high-6% range amidst continued economic uncertainty.”

An index reading of 100 corresponds to the level of contract activity in 2001.

National Pending Home Sales – June 2025

• Down 0.8% from May
• Down 2.8% from June 2024

Regional Data
Northeast

• Up 2.1% month-over-month
• Flat year-over-year

Midwest

• Down 0.8% month-over-month
• Down 0.9% year-over-year

South

• Down 0.7% month-over-month
• Down 2.9% year-over-year

West

• Down 3.9% month-over-month
• Down 7.3% year-over-year