Contract signings and new home listings reached their highest levels since mortgage rates surged in 2022, signaling a potential shift in the U.S. housing market after three years of subdued activity, according to a new analysis from Realtor.com.
The report found contract signings rose 4.5% year over year in April, accelerating from a 2.9% increase in March and marking the strongest gain in three years. New listings also increased, rising 1.4% from a year earlier and standing 22% above the market’s 2023 low point.
The combination of growing inventory and rising buyer activity suggests housing demand is beginning to recover after being constrained by elevated borrowing costs and affordability pressures that emerged when mortgage rates climbed sharply in 2022.
“For the first time in three years, we’re seeing contract signing growth that genuinely outpaces the trend of the recent past,” said Jake Krimmel, senior economist at Realtor.com. “Buyers have been sidelined but they haven’t disappeared – they’ve simply been waiting for the right conditions.”
Krimmel said markets where sellers entered with realistic pricing have seen the strongest buyer response.
“In the metros where sellers have come to market with realistic prices, buyers are showing up,” he said. “That supply-demand-price alignment is what separates a dynamic market from a stagnant one.”
The report tracks housing activity from January through April across the nation’s 50 largest metropolitan areas and found that 34 markets recorded more contract signings than during the same period in 2025, while 31 posted increases in new listings.
Midwestern markets showed some of the strongest momentum. Kansas City recorded a 20.7% increase in contract signings alongside a 12.5% rise in new listings. Louisville posted gains of 18.9% and 13.6%, respectively, while Columbus, Indianapolis, and Cincinnati also reported increases in both measures.
Several Sun Belt markets showed rising buyer demand despite fewer homes entering the market. Phoenix recorded an 8.1% increase in contract signings despite a slight decline in listings, while Austin and Jacksonville posted signing gains of 7.6% and 5.2%, respectively, even as new listings fell.
Realtor.com attributed those gains in part to price adjustments that have made homes more attractive to buyers. Nationally, median asking prices per square foot declined 2.4% year over year in April, while the share of listings requiring price cuts also fell.
Austin posted the steepest decline among major markets, with asking prices per square foot down 7.7% from a year earlier. Jacksonville, Dallas, San Antonio, Miami, and Tampa also experienced price corrections that coincided with improving buyer activity.
Not every market shared in the recovery. Las Vegas and Tampa saw declines in both listings and contract signings, while Hartford and Providence continued to struggle with limited inventory despite remaining seller-favored markets.
The report found that growth in contract signings is now outpacing growth in new listings, narrowing a gap that has persisted since the housing slowdown began. Because homes typically close four to six weeks after entering contract, Realtor.com said the increase in pending transactions could translate into stronger closed-sales data by June.
Looking ahead, Krimmel said broader economic conditions remain a key variable for the housing market’s trajectory.
“May and June will be decisive,” he said. “If some resolution to Middle East uncertainty stabilizes mortgage rates and restores consumer confidence, the housing market may finally break out of the lower equilibrium it has occupied since 2022.”
However, he warned that higher interest rates, renewed inflation pressures, or weakening consumer confidence could slow the recovery and leave the market facing challenges similar to those seen in 2025.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.