NAR: Pending Home Sales Waned 4.6% in January; Northeast Posted Slight Gain

Real Estate In-Depth • February 27, 2025
NAR: Pending Home Sales Waned 4.6% in January; Northeast Posted Slight Gain

WASHINGTON—Pending home sales pulled back 4.6% in January according to the National Association of Realtors. The Midwest, South and West experienced month-over-month losses in transactions—with the most significant drop in the South—while the Northeast saw a modest gain. Year-over-year, contract signings lowered in all four U.S. regions, with the South seeing the greatest falloff.

The Pending Home Sales Index—a forward-looking indicator of home sales based on contract signings—fell 4.6% to 70.6 in January, an all-time low. (Last year's cyclical low point in July 2024 was revised from 70.2 to 71.2.) Year-over-year, pending transactions declined 5.2%. An index of 100 is equal to the level of contract activity in 2001.

“It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months,” said NAR Chief Economist Lawrence Yun. “However, it's evident that elevated home prices and higher mortgage rates strained affordability.”

Housing affordability suffered in January as mortgage rates ranged from 6.91% to 7.04%. Compared to one year ago, the monthly mortgage payment on a $300,000 home increased by an extra $50 to $1,590.

Pending Home Sales Regional Breakdown

The Northeast PHSI rose 0.3% from last month to 63.4, down 0.5% from January 2024. The Midwest index contracted 2.0% to 72.8 in January, down 2.7% from the previous year.

The South PHSI plunged 9.2% to 81.0 in January, down 8.8% from a year ago. The West index fell by 1.2% from the prior month to 57.6, down 4.5% from January 2024.

“Even a slight reduction in mortgage rates will likely ignite buyer interest, given rising incomes, increased jobs and more inventory choices,” added Yun.

By Real Estate In-Depth • November 6, 2026
The approximately $1.7 million project includes new sidewalks, curbs and improved driveway entrances along a heavily traveled section of Saddle River Road.
By Real Estate In-Depth • November 6, 2026
Eligible New Yorkers may receive up to $1,086 in assistance this winter, depending on household income, size, heating source and other eligibility factors.
By Real Estate In-Depth • November 6, 2026
The measure authorizes a one-time transfer tax of 0.3 percent on qualifying real estate transactions, generally paid by the purchaser at closing.
By Real Estate In-Depth • November 6, 2026
Approximately 120,000 vehicles travel this section of I-95 daily, making it a critical transportation corridor connecting residential communities, commercial centers...
By Real Estate In-Depth • November 6, 2026
The initiative aims to improve pedestrian and bicycle connections between residential neighborhoods, waterfront parks and major employment centers.
By Real Estate In-Depth • November 5, 2026
For the ninth consecutive year, New York ranked first nationally in the use of state and federal historic rehabilitation tax credits...
More