“The slight gain in pending agreements appears to be driven by enhanced cost conditions. Nevertheless, those conditions might reverse if greater oil rates cause an uptick in home mortgage rates,” Lawrence Yun, NAR’s chief economist said in a statement.
Lisa Sturtevant, the primary financial expert at Bright MLS, associated a few of the annual decline in pending home sales to the existing macroeconomic conditions.
“Even as mortgage rates dipped below 6% last month, continuous financial uncertainty, cost restrictions and a lack of new listings kept numerous home buyers on the sidelines,” she stated in a declaration. “When 2026 started, there was a lot of optimism for a strong spring real estate market. At this moment, the start of the spring homebuying season is postponed, with sellers holding back on putting their homes on the marketplace and buyers questioning whether it is the right time for them to purchase.”
Sturtevant added that if the dispute with Iran is lengthened, the spring housing market may not be as robust as economists were at first anticipating.
Pending home sales down in the Northeast
Regionally, pending home sales rose month-over-month in all areas other than for the Northeast, which tape-recorded a 3.6% monthly decline to an index worth of 55.7. On the other hand, pending home sales were up 4.6% in the Midwest (74.3 ), 2.7% in the South (87.5) and 0.9% in the West (58.4 ). Year-over-year, pending home sales were down in the Northeast (-12.1%) and Midwest (-0.1%), however up in the South (1.2%) and West (3.2%).
“The Midwest– the most inexpensive area of the country– was the strongest entertainer in February. But the Northeast was held back by a mix of higher home costs and a scarcity of supply,” Yun added.
Sturtevant likewise kept in mind that winter season weather in the Northeast might likewise have actually contributed to the high yearly decrease in pending home sales.
Of the top-50 largest metro locations, the San Diego-Chula Vista-Carlsbad, Calif. tape-recorded the largest yearly increase in pending home sales, leaping 13.5%, followed by Jacksonville, Fla. (12.1%); San Jose-Sunnyvale-Santa Clara, Calif. (10.6%); Denver-Aurora-Centennial, Colo. (10.5 ); and Miami-Fort Lauderdale-West Palm Beach, Fla. (1.0%).
Looking ahead, Yun feels there is a substantial quantity of pent-up purchaser demand waiting to be opened, but economic unpredictability may affect the enthusiasm of some possible buyers.
“For newbie property buyers, acquiring a home is not a snap choice,” Yun added. “It takes time to build credit, save for a down payment and fulfill existing rental lease agreements. Although task gains have been slow in current months, there are still 6 million more jobs in the nation than in the pre-COVID duration.”