When to Sign the Deal: Market Signals for Buyers

The U.S. housing market is showing renewed momentum, with pending home sales climbing 4.0% in August 2025 compared to the previous month and 3.8% year-over-year. For buyers, understanding what these numbers mean—and how they translate into real opportunities—can make the difference between securing the right home and missing out in a competitive environment.

Rising Pending Sales Signal Market Shift

The recent rise in pending home sales has caught the attention of buyers, sellers, and industry experts alike. A 4.0% month-over-month increase and a 3.8% year-over-year rise indicate that more buyers are signing contracts to purchase homes, even if those deals have not yet closed. This trend reflects growing confidence among consumers and could signal a shift in market dynamics after a period of relative stagnation. For buyers, these numbers are more than just statistics—they are a snapshot of changing competition levels and evolving opportunities.

What Pending Home Sales Really Mean

Pending home sales are a key forward-looking indicator because they represent agreements that have been signed but not yet finalized. Typically, it takes one to two months for a pending sale to close, meaning these numbers provide an early glimpse of where the housing market is headed. When pending sales rise, it often leads to increased closed sales in subsequent months. For buyers, this means that more people are moving quickly to secure properties, and waiting too long to make decisions may result in losing out to faster-acting competitors.

Buyers Are Adapting to Mortgage Realities

One of the reasons pending home sales are increasing is that buyers are starting to adapt to the current interest rate environment. After a long stretch of hesitation during periods of rapid rate hikes, many buyers are recognizing that mortgage rates may remain relatively high for some time, and waiting for dramatic drops may not be a winning strategy. Instead, they are locking in rates now, sometimes using points or adjustable-rate mortgages to manage costs. This shift in behavior is leading to a more active marketplace, where hesitation is giving way to strategic action.

More Inventory Creates New Opportunities

Another factor driving this uptick is a gradual increase in housing inventory. Over the summer, more homes have come onto the market, giving buyers a wider range of options than they had during the extremely tight supply of previous years. A larger inventory means buyers can find properties that fit their needs more precisely, and it encourages them to make offers before others do. Additionally, sellers are becoming more realistic about pricing, leading to slightly more negotiable deals. In this kind of environment, buyers who are prepared—pre-approved for financing, clear about their priorities, and ready to act—have a distinct advantage.

Strategic Timing Matters More Than Ever

For buyers trying to determine when to move forward with a contract, these market conditions suggest that being proactive can pay off. Rising pending sales indicate that competition is heating up again, and desirable properties may receive multiple offers shortly after being listed. Buyers who wait for the “perfect” market conditions may find themselves left behind. Instead, aligning financial readiness with decisive action—while maintaining realistic expectations about pricing and interest rates—can create the best opportunity to secure a home. Strategic timing is less about predicting market peaks and more about recognizing when the market is shifting and positioning oneself accordingly.

Conclusion: Act Smart, Not Slow

The recent surge in pending home sales is a clear signal that buyer activity is picking up, and the market may be entering a more dynamic phase. For those considering purchasing a home, understanding the meaning behind these numbers is essential. Pending sales data offers valuable insight into upcoming competition, pricing trends, and overall market health. Acting confidently and strategically in response to these trends can help buyers make timely decisions and avoid unnecessary delays. In a market where opportunities can appear and disappear quickly, informed action is often the decisive factor between success and frustration.

Dan Hegstrand

Remax Advantage Plus

11806 Aberdeen St NE Suite #100 Blaine, MN 55449

Email: danhegstrand@remax.net

Phone: (612) 325-6768

Realtor Since 1989
Experience doesn’t cost, it saves!
Re/Max Advantage Plus, GRI
I am celebrating my 35th year as a full-time Realtor in the Twin Cities and surrounding areas! I am your Realtor for all of your Twin Cities residential real estate needs. Call or text 612-325-6768, or email me at DanHegstrand@Remax.net today to get the most out of your real estate experience.
Sellers: Today’s market is still very strong with low inventory and despite higher interest rates it is still a seller’s market. Some sellers are receiving multiple offers over their asking price. It is important to have an experienced Realtor on your side so that you maximize your net return. I’ll make sure your home is viewed by thousands of potential buyers versus selling it in-house where you give up exposure to all potential buyers costing you thousands of dollars. If you are you considering selling your home within the next 1-6 months please contact me to come view your home for a no-cost evaluation.
Buyers: Having a knowledgeable Realtor on your side to expose you to all of the homes available in your market gives you more to choices. Use my 35 years of experience to help you find your dream home. If you are interested in viewing properties online as soon as they enter the market, let me know. We will set up an email search for you that is faster and more accurate than other online home searches. Your email search can be set up right away just by contacting me!
Click on ‘Dan’s Reviews’ to read what clients have to say.