Economists' Outlook

Housing stats and analysis from NAR's research experts.

Pending Home Sales Decline 1.8% in July 2021

The pending home sales pace declined 1.8% in July 2021 from the prior month and fell 8.5% from a year ago.

Bar chart: Pending Home Sales Index, July 2020 to July 2021

From last month, three of the four regions showed gains in contract signings. The West region had the only gain of 1.9%. The Northeast had the largest decline of 6.6% followed by the Midwest which fell 3.3%. The South region had the smallest decrease of 0.9%.

All four regions showed declines from a year ago. The Northeast had the largest dip of 16.9% followed by Midwest with a drop in contract signings of 8.5%. The South had a decrease of 6.7% followed by the West region, which fell by of 5.7%.

Bar chart: U.S. and Regional Pending Sales Index, July 2021 and July 2020

The U.S. pending home sales index level for the month was 110.7. July's contract signings bring the pending index above the 100-level mark for the 15th consecutive month. The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing-home sales above the 5 million mark. Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by 1 to 2 months.

Line graph: U.S. and Regional Pending Home Sales Index, February 2019 to July 2021