Pending home sales in the U.S. rose modestly in February 2026, reflecting a slowly improving housing market as buyers become more active with the arrival of spring. While overall increases were modest, select cities showed significant movement in either direction, revealing shifting demand dynamics across the country.
What Are Pending Home Sales?
Pending home sales track signed contracts on existing homes before the actual closing occurs. Because sales typically close 30–60 days after a contract is signed, this metric offers a forward‑looking snapshot of market activity, often signaling where closed sales will be in the coming months.
In February, pending sales increased slightly compared with January, hinting at a seasonal upturn in buyer interest despite ongoing challenges such as limited inventory and affordability pressures. (homes.com)
Cities With the Biggest Gains
Several markets saw notable increases in pending contracts, indicating stronger buyer demand in those areas:
-
Portland, OR – Pending sales up significantly
-
San Diego, CA – Increased interest with more contracts
-
Sacramento, CA – Continued strength in earlier affordability markets
-
Cleveland, OH – Rising activity in Midwest rebounding regions
-
Indianapolis, IN – Strong buyer interest entering spring
These cities experienced meaningful growth in pending contracts compared with prior months, suggesting that buyer activity may be picking up in select regional markets.
Cities With the Largest Declines
In contrast, certain markets saw a drop in signed contracts for pending sales:
-
New York, NY – Lower pending activity compared with January
-
Chicago, IL – A slight decrease in buyer traffic
-
Boston, MA – Cooling demand in parts of the Northeast
-
San Francisco, CA – A decline that may reflect market normalization
-
Phoenix, AZ – Softer contract activity compared with previous months
These declines could reflect a range of local factors, including price pressure, inventory constraints, or seasonal shifts in buyer patterns. (homes.com)
Why This Matters
Pending sales trends are closely watched by real estate professionals because they historically predict future closed sales. A rise in contracts typically signals stronger transaction volume in the coming months — especially important during the spring selling season.
While national activity showed only modest growth, the variances among cities indicate that local conditions continue to shape real estate dynamics:
-
In some West Coast and Midwest markets, buyers appear more active
-
In several large Northeast and urban markets, contract activity softened
Understanding these patterns can help buyers and sellers make more informed decisions, particularly in markets where seasonal movement is more pronounced.
What This Means for NYC Buyers and Sellers
In dynamic urban markets like New York City, even small shifts in pending contract activity can signal larger seasonal changes. A decrease in pending contracts may reflect tight inventory or high price points, while increases in other markets could indicate shifting buyer preferences toward affordability or lifestyle.
For Manhattan buyers, Brooklyn investors, or Queens movers, local market insights are critical. A slight uptick in contracts can signal more competition ahead, while a slowdown might offer better negotiation opportunities.
Market Outlook
The slight increase in pending home sales suggests a market that is gradually gaining momentum. However, because activity varies significantly between regions and cities, localized strategies remain essential.
Buyers should monitor contract trends alongside inventory levels and mortgage rates when planning offers, while sellers may need to adjust pricing and marketing strategies based on real‑time market signals.
