Uneven Recovery Across Multiple Regions
The U.S. housing market showed further signs of sluggish momentum in June 2025, as contract signings for home purchases dipped for the second consecutive month, underscoring persistent affordability challenges and buyer hesitation in many parts of the country.
Pending home sales — a forward-looking indicator of housing activity based on signed contracts — declined 0.8% in June from the previous month and were down 2.8% compared to the same time last year, according to new data released Tuesday by the National Association of Realtors.
Regionally, contract signings fell across most of the country, with the West leading the downturn. Pending sales in the region dropped a sharp 3.9% from May and were down 7.3% year-over-year, reflecting a continued pullback in some of the nation’s most expensive markets. The South, the largest housing market by volume, also saw monthly and annual declines of 0.7% and 2.9%, respectively.
In the Midwest, pending sales slipped 0.8% month-over-month and 0.9% from a year earlier. The Northeast was the only region to post a monthly gain, rising 2.1%, though activity there was flat compared to June 2024.
“The latest data suggests buyers are still proceeding cautiously, even with more listings entering the market,” said Lawrence Yun, chief economist at the NAR. “The Northeast stands out as an exception — seeing modest gains in activity despite leading the nation in home price appreciation.”
While overall contract activity remains subdued, Yun pointed to early signs of renewed optimism among real estate professionals. The NAR’s latest Realtors Confidence Index showed a 4% year-over-year rise in buyer traffic and a 6% increase in seller traffic — potentially a harbinger of improving conditions ahead.
“Realtors are sensing a pickup in momentum,” Yun added. “That confidence is buoyed by rising mortgage applications in recent weeks, hinting at a possible rebound in sales activity as we head into late summer.”
Still, housing affordability remains a key headwind, as elevated prices and stubbornly high interest rates continue to sideline many first-time buyers. The uneven recovery in pending home sales suggests the market’s rebound will remain patchy and highly regional in the months ahead.
June 2025 U.S. Pending Home Sales Snapshot:
National: -0.8% (MoM), -2.8% (YoY)
Northeast: +2.1% (MoM), 0.0% (YoY)
Midwest: -0.8% (MoM), -0.9% (YoY)
South: -0.7% (MoM), -2.9% (YoY)
West: -3.9% (MoM), -7.3% (YoY)
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