The latest National Association of REALTORS® data shows a notable shift in housing market momentum heading into year’s end — and real estate professionals should take note. Pending home sales have climbed to their highest level in nearly three years, signaling renewed buyer activity after a period of market caution. Reuters
What’s Happening in the Market
According to NAR’s Pending Home Sales Index — a key forward‐looking gauge tracking signed contracts on existing homes — contracts increased 3.3% in November compared to October and 2.6% year-over-year. This performance marks the strongest reading since February 2023. Reuters
Why does this matter? Pending sales often lead closed sales by one to two months, meaning this uptick may foreshadow stronger closings in early 2026. National Association of REALTORS®
What’s Driving the Uptick?
Several dynamics are contributing to this shift:
Lower Mortgage Rates:
Mortgage rates have eased in recent months — with the 30-year fixed rate dropping to the mid-6% range — improving monthly payment affordability.
Rising Purchasing Power:
Wage growth is outpacing home price increases, further enhancing affordability and drawing buyers who had been sitting on the sidelines. Reuters
More Inventory than Last Year:
While inventory contracted slightly from October, the supply of active listings remains higher than a year ago — giving buyers more choices. The Real Deal
Regional Takeaways
All four major U.S. regions posted gains in pending sales — with some outperforming others — demonstrating broad-based activity across the country. Reuters
What This Means for REALTORS®
As front-line market experts, you’re seeing this trend play out in client conversations:
- Buyer Confidence Is Returning: Lower payment pressures are prompting action.
- Transactions May Pick Up Early in 2026: Expect a smoother handoff from contract to close.
- Pricing Dynamics Remain Important: Even as sales activity rises, prices are still holding firm — meaning skilled pricing and negotiation remain essential.
This data underscores a subtle shift from caution to confidence — one that many members may already be experiencing in their local markets. Stay tuned for the January Pending Home Sales data release on January 21, 2026. National Association of REALTORS®
