Spring Home Sales Improve in 2026: Contract Signings Reach Highest Level Since 2022
The U.S. housing market is showing stronger signs of activity this spring as both home listings and contract signings continue improving across many major metro areas.
According to Realtor.com’s Spring 2026 Housing Market Progress Report, contract signings in April increased 4.5% compared to a year earlier, marking the strongest annual gain in roughly three years. At the same time, new listings also climbed to their highest level since 2022.
The report suggests that buyers who spent much of the past two years waiting on the sidelines are beginning to return to the market, especially in areas where sellers are pricing homes more realistically from the start.
Buyers Are Returning to the Market
Housing activity slowed sharply after mortgage rates surged in 2022, but Realtor.com says conditions are now improving gradually.
Through the first four months of 2026, both supply and buyer demand have started moving higher together for the first time in several years.
Economists say that balance is helping revive market activity in many regions.
According to Realtor.com Senior Economist Jake Krimmel, buyers never fully disappeared from the market. Instead, many were waiting for a combination of better inventory, more realistic pricing, and improved affordability conditions before making offers.
That shift is now becoming visible in spring sales data.
Contract Signings Continue Climbing
The report found that contract signings rose 4.5% year over year in April, accelerating from a 2.9% increase in March.
Year-to-date signings are now:
- Up 2.9% compared to 2025
- More than 4% above the market low reached in 2023
- At their highest level since 2022
Realtor.com noted that pending contracts often become closed sales within four to six weeks, meaning stronger activity could soon appear in official home sales reports during the summer months.
New Listings Also Improve
The spring market has also benefited from improving housing supply.
New listings nationally increased 1.4% from a year ago and now sit roughly 22% above the lows recorded during 2023.
That increase is helping provide buyers with more choices after years of limited inventory.
While inventory remains below pre-pandemic levels in many markets, economists say the improvement is helping create a more balanced housing environment.
Midwest Markets Lead the Recovery
The strongest combination of rising listings and growing buyer demand is currently happening in many Midwest cities.
Realtor.com identified 21 major metro areas where both new listings and contract signings increased compared to last year.
Several Midwest markets posted especially strong gains.
Metro Areas Showing Strong Two-Sided Growth
| Metro Area | New Listings Growth | Contract Signings Growth |
|---|---|---|
| Kansas City | +12.5% | +20.7% |
| Louisville | +13.6% | +18.9% |
| Indianapolis | +14.7% | +6.6% |
| Columbus | +8.0% | +7.9% |
| Cincinnati | +10.8% | +4.7% |
Economists say these markets continue attracting buyers because they offer relatively better affordability compared to many coastal cities.
Some Markets Improve Despite Lower Inventory
Interestingly, several markets are seeing rising buyer demand even though new listings are declining.
Cities including Phoenix, Austin, and Jacksonville all recorded higher contract signings despite fewer homes entering the market.
Markets With Rising Demand Despite Fewer Listings
| Metro Area | Listings Change | Contract Signings Change |
|---|---|---|
| Phoenix | -0.4% | +8.1% |
| Austin | -3.5% | +7.6% |
| Jacksonville | -9.5% | +5.2% |
These markets experienced large price corrections over the past two years, which may now be encouraging buyers to return.
Lower asking prices combined with improved affordability appear to be helping demand stabilize.
Some Housing Markets Remain Weak
Not every market is recovering at the same pace.
Several cities continue seeing weaker buyer demand alongside slowing inventory activity.
Markets Still Facing Weak Conditions
| Metro Area | Listings Change | Contract Signings Change |
|---|---|---|
| Las Vegas | -0.8% | -8.4% |
| Tampa | -12.2% | -3.1% |
| Hartford | -13.1% | -9.2% |
| Providence | -8.0% | -5.6% |
Realtor.com said these markets are facing different challenges.
In some cities, demand remains weak because buyers are hesitant about affordability. In others, limited inventory continues restricting overall activity.
Pricing Strategy Is Becoming More Important
One major trend highlighted in the report is the growing importance of accurate pricing.
Markets where sellers adjusted pricing expectations more realistically are generally seeing stronger buyer response.
Nationally:
- Median list price per square foot declined 2.4% year over year in April
- The share of listings with price cuts also fell slightly
That combination suggests sellers are becoming more strategic about pricing homes correctly before listing them.
Rather than repeatedly lowering prices later, many sellers appear to be entering the market closer to realistic buyer expectations.
Buyers Are Still Sensitive to Affordability
Even though activity is improving, affordability remains one of the biggest issues in the housing market.
Mortgage rates continue hovering above 6%, keeping monthly payments elevated for many households.
Buyers remain cautious and selective, particularly in expensive markets where home prices have not corrected significantly.
Still, economists say many buyers are adapting to higher rates as long as pricing becomes more reasonable and inventory improves.
Southern Buyer’s Markets Face Mixed Results
Realtor.com also noted that many Southern housing markets entered 2026 in buyer’s market territory.
In these regions, sellers are often more hesitant to list homes because conditions are less favorable than during the pandemic housing boom.
As a result, several Southern metros are still seeing weaker listing growth.
At the same time, some Southern cities that experienced major price corrections are beginning to attract renewed buyer interest.
Housing Market Shows Signs of Stabilization
The latest report suggests the housing market may finally be moving into a more balanced phase after several years of disruption caused by rapid mortgage rate increases.
While conditions are still far from normal in many areas, the combination of improving inventory and rising contract signings points toward a healthier spring market compared to recent years.
If mortgage rates stabilize later in 2026 and sellers continue adjusting prices realistically, economists believe housing activity could continue improving during the second half of the year. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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