With prices moderating but still too steep for buyers in many parts of the country, contracts to sell existing single-family homes and condos fell in June nationally and in three of the four major regions.
The Northeastern U.S. was the only region to see a rise in pending sales, up 2.1% from May’s figure, and saw no change from one year earlier, the National Association of Realtors said Wednesday. Overall, contracts declined 0.8% from the previous month and 2.8% on an annual basis. Pending sales are considered a good indicator of what actual sales data will look like in the next one to two months.
“The data shows a continuation of small declines in contract signings despite inventory in the market increasing. Pending sales in the Northeast increased incrementally even though home price growth in the region has been the strongest in the country,” NAR chief economist Lawrence Yun said in a statement.
The NAR’s report is consistent with other recent analyses that show many people are wary of taking a financial risk while prices remain at or near record highs. Increasing supply of homes for sale in most markets has not been enough to lead to significant price reductions.
Recent reports indicate that high prices and concerns about the economy have stymied homebuyers' confidence, and some buyers are simply ending their house search for now.
“Affordability is a major challenge for home buyers right now,” Lisa Sturtevant, chief economist for Bright MLS, which monitors the housing market in the mid-Atlantic, said in a statement. “The median sold price nationally hit a new record high in June and prices of existing homes are now higher than new home prices.”
Prices are a bigger problem right now than high mortgage rates, Sturtevant said, noting that even though the average rate is lower than a year ago, sales have not increased in response. A growing supply isn’t having that much effect, either. After all, the biggest declines since last year in contracts to sell homes were in the South and West, where inventory has been “increasing quickly,” she said.
While buyers may be reluctant to sign deals, they are out there looking at houses, Yun said, pointing to a recent survey of real estate agents showing a 4% increase in homebuyer traffic since the same time in 2024.
The Western U.S. saw a 7.3% year-to-year drop in pending sales, down 3.9% from May. In the South, contracts fell 2.9% from a year ago and 0.7% from the past month. The Midwest’s decline from last year was more moderate, 0.9%, with a 0.8% drop from May.
Recent trends suggest that actual sales of existing homes for the year as a whole will be even lower than in 2024, Sturtevant said, when they hit their lowest point in 30 years.
“Unfortunately, there is little to suggest any sort of major rebound in home sales as we head into fall,” she said. “I think it is likely that 2025 will continue to be a ‘stuck’ housing market with both buyers and sellers waiting until 2026 for more certainty.”
