Pending Home Sales Hold Steady as Inventory and Affordability Improve

The latest report from the National Association of Realtors (NAR) shows that pending home sales remained flat in September, following the strongest pace of the year just one month earlier. The Pending Home Sales Index, which tracks contract signings (not closings), is widely viewed as a leading indicator of existing-home sales, since most signed contracts turn into closed transactions within several weeks.

Despite the pause in monthly growth, NAR Chief Economist Lawrence Yun says the overall market trend is encouraging. “Inventory has climbed to a five-year high, giving home buyers more options and room for price negotiation,” Yun explained. “Looking ahead, mortgage rates are trending toward three-year lows, which should further improve affordability, though the government shutdown could temporarily slow home sales activity.”

A Closer Look at Regional Trends

Pending sales activity was mixed across the country. The South and Northeast recorded the largest month-over-month gains, while the West held steady. The Midwest, however, saw a 3.4% decline compared to August. Overall, contract signings are now just 0.9% below last year’s level, suggesting that buyer demand remains resilient even amid shifting economic conditions.

What This Means for Buyers and Sellers

With inventory at multi-year highs and mortgage rates easing, buyers are finding more opportunities to negotiate and secure homes that fit their budget. Sellers, meanwhile, are adjusting to a market that favors balance over bidding wars.

In short, the housing market is showing signs of normalization — steadier prices, improving affordability, and a more predictable pace of activity heading into the end of the year.

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