In early 2026, Pending Home Sales have drawn renewed attention from economists, real estate professionals, and homebuying consumers alike as they show signs of broad strengthening across the United States. According to the latest National Association of REALTORS® report, Pending Home Sales rose 3.3 percent in November 2025 compared to the prior month and 2.6 percent year-over-year, reaching the highest level in nearly three years.
Understanding why Pending Home Sales matter can help agents, sellers, and buyers interpret current market conditions and anticipate future trends. While existing-home sales measure completed closings, pending sales measure contracts signed and homes under contract. Because most closings occur one to two months after a contract is signed, Pending Home Sales act as a leading indicator for the trajectory of future home sales.
1. Pending Home Sales Signal Market Momentum
One of the principal reasons Pending Home Sales are closely watched is their forward-looking nature. When more buyers sign contracts on homes (i.e., more homes move into a pending status), this generally suggests increased buyer demand that will translate into higher closed sales in the near future. In the November 2025 data, Pending Home Sales reached levels not seen since early 2023, suggesting a rebound in buyer interest after periods of slower market activity.
Importantly, this trend has shown broad regional strength: contract signings increased in the Northeast, Midwest, South, and West in November, with the West experiencing the strongest month-over-month gain at over 9%. Such broad participation across regions reinforces the idea that the housing market’s momentum is not confined to pockets but is more systemic—although local conditions can vary significantly.
2. Why Agents Follow Pending Home Sales
Real estate agents rely heavily on Pending Home Sales data to gauge market conditions and plan their business strategies. Rising pending sales can signal increasing buyer demand, which helps agents advise clients on pricing strategies and expected competition. In seller markets with high pending activity, agents can position listings aggressively; in quieter markets, they may prioritize buyer counseling.
Pending data also informs agents’ expectations for transaction volume over the next 30–60 days. Because contract signings typically precede closings, agents use pending sales trends to forecast their workload, staffing needs, and expected commission flow. A consistent uptick in Pending Home Sales can therefore influence operational planning and marketing strategies.
3. Sellers Benefit from Higher Pending Home Sales
For home sellers, rising Pending Home Sales generally reflect stronger demand and a healthier market environment. When many buyers are signing contracts, competition can increase, which often leads to quicker sales and, in some cases, multiple offer situations. Sellers may achieve higher prices and more favorable terms, such as shorter contingencies or limited concessions.
Grab my Home Staging Guide if selling is in your 2026 future.
Higher pending activity also reduces market uncertainty. Sellers who see active contract signings gain confidence that their own homes are likely to sell, even in regions where inventory constraints have previously limited movement. In late 2025 and early 2026, markets such as parts of the South and West have shown elevated pending activity relative to other areas, contributing to broader selling confidence.
4. What Buyers Should Watch
While rising Pending Home Sales typically signal healthy demand, buyers should interpret this metric in context. A rising pendings figure means more buyers are entering contracts, which can indicate increasing competition for available homes. However, it may also reflect improving affordability conditions—such as mortgage rates easing or increased wage growth relative to home prices—that make the market more accessible, as noted by economists analyzing the latest data.
Buyers should also consider regional variations. In some markets, strong pending activity may hint at limited inventory and upward price pressure; in others, it may signal a balanced market with ample options. Local economic conditions, job growth, and housing supply dynamics influence how Pending Home Sales translate into buyer experience.
5. Geographic Variation: Where Pending Activity May Be Higher
Although national Pending Home Sales data provides an overall trend, local markets can differ significantly. The West and South showed above-average increases in pending contract signings, with the West posting nearly double-digit gains in some reports, according to National Association of REALTORS.
While comprehensive city-level pending indices for 2025 are not uniformly published, we know that housing markets with high turnover, robust employment growth, and affordability often exhibit stronger pending activity. Historically strong markets such as parts of California (e.g., San Diego), Florida (e.g., South Florida), and other Sun Belt metros continue to attract buyer interest, though inventory conditions vary.
Smaller regional markets can also show significant activity. For example, recent reports from local associations—such as in the Tri-Cities area of Northeast Tennessee—indicated pending home sales rising nearly 15 percent in November, illustrating how local dynamics can outperform national trends.
Conclusion
In summary, Pending Home Sales remain one of the most important metrics in real estate because they reflect near-term market direction, buyer demand, and the health of local and national housing markets. Agents use this metric to guide pricing and business strategy; sellers watch it for signals of demand strength; and buyers use it to understand competition and timing.
As 2026 begins with rising Pending Home Sales across many regions, stakeholders in real estate will continue to monitor this indicator for insights into what the coming months might bring. Whether you are an agent planning for higher transaction volume, a seller evaluating timing, or a buyer gauging market competitiveness, Pending Home Sales offer actionable intelligence that precedes actual closed sales and informs strategic decisions.
