The American housing market showed some unexpected muscle this March, as contract signings for existing homes climbed 1.5% despite the headwind of higher mortgage rates.
Data released Tuesday by the National Association of REALTORS® (NAR) reveals a tug-of-war between rising costs and a deep-seated desire for homeownership, with the monthly bump suggesting that many buyers are tired of waiting on the sidelines.
While the month-over-month numbers look optimistic, the market is still finding its footing compared to last year. Total pending sales are down 1.1% from March 2025, painting a picture of a recovery that is moving in fits and starts.
Regional performance was a mixed bag; the Northeast and South saw significant jumps in activity, while the Midwest and West pulled back. Specifically, the Northeast surged 4.4% and the South rose 3.9% from February. Conversely, the West saw a 2.6% dip, and the Midwest slid by 1.3%.
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NAR Chief Economist Dr. Lawrence Yun noted that the increase in signings points to “pent-up housing demand” that refuses to buckle under the weight of expensive loans.
“A greater supply of inventory will help translate that demand into more home sales,” Yun said, adding that the sensitivity to interest rates is most acute among younger, first-time buyers. He suggested that for the market to truly break loose, the focus must shift toward building smaller, more affordable homes.
The South appears to be the primary engine of growth right now. It was the only region to post a year-over-year gain, rising 2.3% from March 2024. Yun attributed this to a specific recipe of “price cuts over the past year” paired with “strong job growth,” a combination he believes will keep the Southern market humming throughout 2026.
On a local level, the numbers tell an even more dramatic story.
According to Realtor.com Economics, certain metro areas are outpacing the national average by a wide margin.
Kansas City led the pack with a massive 14.9% annual jump in pending sales, followed closely by Milwaukee at 13.5% and Austin at 12.8%. Other high-performers included Phoenix and Raleigh, proving that while the national outlook is steady, local demand in specific hubs remains white-hot.
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