Housing News

Pending Home Sales Fall, but Local Markets Offer Openings for Homebuyers

Fewer homebuyers signed contracts in July, yet the slowdown may create opportunities for those who remain in the market.

Pending home sales fell 2.3% from June and 2.2% from July 2025, the National Association of Realtors (NAR) reported. Contract signings declined in every region and reached their lowest level since January.

At the same time, asking prices fell for the ninth consecutive month as home sellers adjusted to homebuyer budgets. Homes also spent slightly less time on the market than they did a year earlier, marking the first annual improvement in more than two years.

“July proved to be a market experiencing a seasonal slowdown rather than an outright collapse,” said Realtor.com Senior Economist Hannah Jones in a statement.

Pending home sales measure signed contracts for existing homes that have not yet closed. Since these contracts typically lead closings by one or two months, the report offers an early look at near-term housing market activity.

“Right now, pending contracts are 30% below their pre-pandemic 2019 level, while payroll employment is 5% above,” said NAR Chief Economist Lawrence Yun in a statement. “That gap points to sizable pent-up demand that should be unleashed in the coming years as more supply reaches the market and affordability improves.”

Homebuyers may find more negotiating room

Slower contract activity may give homebuyers more time to compare properties, complete inspections, and negotiate with home sellers.

Conditions remain highly local. The South and West generally offer homebuyers more housing stock, less competition, and greater negotiating leverage, Jones said. Many markets in the Northeast and Midwest remain faster-moving due to a more limited supply of homes for sale.

Pending home sales declined month over month in all four regions:

• West: Down 4.7%
• South: Down 2.2%
• Northeast: Down 2%
• Midwest: Down 0.7%

The Midwest was the only region to post an annual increase, with pending sales rising 1.7% from July 2025. Contract signings declined 0.2% in the Northeast, 3% in the South, and 7.1% in the West compared with a year earlier.

The national slowdown arrived as more home sellers lowered their asking prices. Price reductions also became more common in July.

For homebuyers, a price reduction may indicate that a home seller is willing to negotiate. Depending on the property and local market, homebuyers may be able to negotiate the sale price, request seller assistance with closing costs, or seek repairs after an inspection.

These metros recorded the largest gains in pending sales

Some local housing markets moved in the opposite direction from the national trend. Among the 50 largest metropolitan areas, these 10 posted the largest year-over-year increases in pending home sales in July, according to Realtor.com data:

1. Virginia Beach, Va.: Up 17.2%
2. San Antonio, Texas: Up 11.8%
3. Cincinnati, Ohio: Up 6.2%
4. Pittsburgh, Pa.: Up 3.7%
5. Miami, Fla.: Up 2.4%
6. Austin, Texas: Up 1.6%
7. Buffalo, N.Y.: Up 1.3%
8. St. Louis, Mo.: Up 1.2%
9. Jacksonville, Fla.: Up 1.2%
10. Columbus, Ohio: Up 0.2%

Virginia Beach stood out with a 17.2% annual increase in contract signings. San Antonio followed with an 11.8% gain, showing that homebuyer demand remains strong in select Southern markets despite the broader regional decline.

The local differences underscore the importance of evaluating housing stock, prices, time on the market, and competition where a homebuyer plans to purchase. National figures provide useful context, but conditions can vary substantially from one metro to the next.