What Slower Pending Home Sales Could Mean for Buyers and Sellers

The latest Pending Home Sales Report from the National Association of REALTORS® points to a slower pace of contract activity across the country.

In July 2026, pending home sales declined 2.3% from June and 2.2% from July 2025. The slowdown was more pronounced in the West, where pending sales fell 4.7% month over month and 7.1% year over year.

Pending sales measure homes that are under contract but have not yet closed, making them a useful early indicator of near-term closed-sale activity. Still, national and regional trends do not tell the full story for every city, neighborhood, or price range. Markets within Southwest Riverside County can move differently based on local inventory, buyer demand, pricing, and property condition.

What Is Behind the Slower Pace?

According to NAR Chief Economist Dr. Lawrence Yun, higher mortgage rates during the middle of summer contributed to fewer contract signings. He also noted that record-level home prices have caused more homes to remain on the market longer, while fewer buyers are offering above asking price than they did a year ago.

NAR also points to a potential source of future demand. Pending contracts remain below pre-pandemic levels even though payroll employment is above 2019 levels. If affordability improves, mortgage rates stabilize or decline, and more homes become available, some of today’s waiting buyers may re-enter the market.

What This Could Mean for Buyers

• More room to negotiate: With fewer bidding wars in many segments, buyers may have more opportunity to negotiate price, seller credits, repairs, and contingencies.
• More time to evaluate: Homes that remain available longer can reduce the pressure to make a rushed decision.
• Preparation still matters: Well-priced, move-in-ready homes in desirable locations can still attract strong interest. A clear budget, loan pre-approval, and focused search strategy remain essential.

What This Could Mean for Sellers

• Pricing matters more than ever: Buyers are paying attention to value. A home priced above its competitive range may sit longer and require price reductions later.
• Presentation creates separation: Professional photography, thoughtful preparation, staging where appropriate, and a targeted marketing plan can help a listing stand out.
• Local strategy beats broad headlines: The right list price and launch plan should be based on current competing homes, recent sales, buyer activity, and the specific features of your property.

The Bottom Line

A slower pending-sales report does not mean every buyer should wait or every seller should delay. It means strategy matters. Buyers may find more negotiating opportunities, while sellers need accurate pricing and strong presentation to compete effectively.

Your Next Move Starts With Local Numbers

National housing trends can provide useful context, but your decision should be based on today’s inventory, pricing, financing options, and personal goals in Southwest Riverside County.

Whether you’re considering buying, selling, or simply planning ahead in Southwest Riverside County, let’s build a clear strategy around your next move.

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Call or text Richard “Rick” Rodriguez at (951) 498-4456

Follow me on Youtube/IG @realtor_rick77.

Source: National Association of REALTORS®, “NAR Pending Home Sales Report Shows 2.3% Decrease in July,” August 18, 2026. National and regional statistics are provided for general informational purposes and should not be interpreted as a forecast or guarantee of local market performance.