Research and Statistics

Sales declined across all regions on both a monthly and yearly basis, but unusual January weather makes it difficult to identify the underlying cause and to determine whether this decline is temporary. Despite the slowdown, housing affordability has improved to its best level since March 2022, helped by stronger wage growth, slower home price increases, and lower mortgage rates compared with last year. However, inventory remains tight and continues to fall short of what the market needs.

Pending home sales fell month‑over‑month across all four U.S. regions in December 2025; year‑over‑year activity rose in the South but declined in the Northeast, Midwest, and West. Chief Economist Lawrence Yun's takeaway: “The housing sector is not out of the woods yet.” Yun noted that weaker new contract activity, shrinking inventory because new listings lagged closings, and limited choices likely dampened buyer enthusiasm.