W
ASHINGTON (April 30, 2025) – The National Association of REALTORS reported a significant increase in pending home sales for March, with a 6.1% month-over-month rise, the largest since December 2023's 7.0% surge. This growth was largely driven by gains in the Midwest, South, and West regions, with the South experiencing the most substantial increases.

    The Pending Home Sales Index (PHSI) rose to 76.5 in March, a 6.1% increase from February. However, year-over-year contract signings declined by 0.6%. The index measures pending home sales based on contract signings and serves as a forward-looking indicator of future home sales.

    According to NAR Chief Economist Lawrence Yun, "Home buyers are highly sensitive to even minor fluctuations in mortgage rates." With mortgage rates decreasing by 20-30 basis points in March, the average rate fell to 6.65%, down from January's 6.96% and February's 6.84%.

    The regional breakdown showed the Northeast experiencing a 0.5% decline in pending home sales, while the Midwest saw a 4.9% increase, up 1.4% from last year. The South PHSI soared 9.8%, down 0.4% from March 2024, and the West index climbed 4.8% from February, down 2.0% from last year.

    Yun noted that the spring homebuying season typically brings a surge of buyers and sellers compared to winter months. In March, signed contracts surged 34.1% from February, reflecting a pattern consistent with previous years. Inventory levels also rose by 8.1% in March, indicating a more dynamic housing market.

    The National Association of REALTORS is America's largest trade association, involved in all aspects of residential and commercial real estate. The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes.