The U.S. housing market showed signs of resilience in March 2026, as pending home sales rose 1.5% compared to the previous month.
While monthly activity increased, the National Association of REALTORS (NAR) reported a slight 1.1% dip in contract signings compared to the same period last year.
NAR Chief Economist Lawrence Yun attributed the monthly growth to “pent-up housing demand,” noting that buyers are moving forward despite elevated mortgage rates.
Yun emphasized that increasing housing inventory remains the key to converting this interest into closed sales.
Regional Performance Breakdown
Market activity varied significantly by geography, with the South leading the way in annual growth while other regions struggled to match last year’s pace.
- South: The standout performer, seeing a 3.9% monthly jump and a 2.3% increase year-over-year. Yun noted that a combination of price cuts and robust job growth is fueling activity in this region.
- Northeast: Experienced the strongest monthly surge at 4.4%, though it remains 6.5% lower than March 2025 levels.
- Midwest: Faced declines on both fronts, dropping 1.3% for the month and 3.1% for the year.
- West: Activity cooled with a 2.6% monthly decrease and a 1.7% annual decline.
The report highlighted that younger, first-time buyers are the most sensitive to shifting mortgage rates.
To sustain market momentum, Yun suggested that new-home construction should prioritize smaller, more affordable properties to meet the needs of this demographic.
Top-Performing Metro Areas
While national year-over-year figures were down slightly, several major metropolitan areas saw double-digit growth. According to Realtor.com® data, the top five markets for annual increases in pending sales were:
- Kansas City, MO-KS: +14.9%
- Milwaukee–Waukesha, WI: +13.5%
- Austin–Round Rock–San Marcos, TX: +12.8%
- Phoenix–Mesa–Chandler, AZ: +12.1%
- Raleigh–Cary, NC: +10.0%
Other notable gains were seen in Portland, Richmond, Virginia Beach, Dallas, and the Washington D.C. metro area, all of which posted annual increases of 8% or higher.
[Read more about this topic on NAR.Realtor]