Pending Home Sales Increased 4.0 Percent in August

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In a quiet Holland, Michigan, neighborhood, a young couple pores over a digital contract, their dream home within reach but clouded by new commission rules. Across the country, in Florida's vibrant Tampa Bay, a retiree weighs a purchase against soaring insurance costs, buoyed by a dip in mortgage rates. These snapshots from August 2025 capture a pivotal moment: U.S. pending home sales surged 4.0%, signaling resilience in a real estate market reshaped by lower rates and the 2024 National Association of Realtors (NAR) settlement. This shift, felt acutely in Michigan and Florida, reflects broader trends in affordability, technology, and transparency that are redefining how homes are bought and sold.

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A Surge in Contracts Signals Market Momentum

The Pending Home Sales Index (PHSI), a forward-looking measure of signed contracts for existing homes, condos, and co-ops, climbed 4.0% in August 2025, according to the NAR. Month-over-month, the Midwest, South, and West saw gains, while the Northeast experienced a slight dip. Compared to the previous year, all regions reported increases. NAR Chief Economist Lawrence Yun credits this uptick to declining mortgage rates, noting, “Affordable financing is drawing more buyers into the market, particularly in the Midwest, where cost advantages are pronounced.” The data, set to be updated on October 29, 2025, underscores a market in transition, driven by economic shifts and regulatory changes.

Beyond the numbers lies a deeper story. The 2024 NAR settlement, which overhauled commission structures, has introduced both opportunities and complexities. In localized markets like Michigan's West Michigan and Holland, and Florida's coastal hubs, buyers, sellers, and agents are adapting to a new reality where technology and negotiation play starring roles.

Michigan's Steady Growth Meets Affordability Challenges

In West Michigan, particularly in Holland and Grand Rapids, the housing market is humming with activity. Data from the Michigan Realtors® Association points to a seasonal rise in pending sales, fueled by demand for mid-priced homes that appeal to young families and first-time buyers. Proptech platforms have become critical, offering tools like Multiple Listing Service (MLS) integration and virtual tours that streamline the homebuying process. A Holland-based agent explained, “Digital tools let buyers preview homes instantly, cutting days off the deal timeline.” These platforms are transforming how sellers reach audiences, making listings more accessible and efficient.

Yet, affordability remains a hurdle. In Grand Rapids and Holland, home prices have outstripped wage growth, putting pressure on first-time buyers. An economist from Michigan State University's Real Estate Center cautioned, “Stable mortgage rates could sustain this growth, but affordability constraints may limit its scope.” Rural Michigan brokerages, slower to adopt proptech, struggle to compete with urban firms, highlighting a digital divide that could shape future market dynamics.

Florida's Coastal Boom Faces Insurance Headwinds

Florida's housing market, by contrast, is a study in demographic and economic flux. The Florida Realtors® August Market Report shows robust demand in suburban and coastal areas like Orlando and Tampa, driven by retirees relocating from the Northeast and Midwest, as well as younger professionals seeking opportunity. Digital tools, such as online title and escrow services, have accelerated transactions, allowing buyers to move quickly despite rising costs. A Tampa broker observed, “Clients sign contracts from their phones now, but they're still reeling from insurance quotes.”

The state's insurance crisis looms large. Skyrocketing homeowner premiums, driven by climate risks like hurricanes, are tempering buyer enthusiasm. A retiree in Orlando described the challenge: “The home was perfect, but the insurance costs gave me pause.” Despite these hurdles, the 4.0% rise in pending sales reflects a market buoyed by demographic trends and technological innovation, with proptech platforms playing a pivotal role in keeping deals on track.

Navigating the New Commission Landscape

The 2024 NAR settlement has upended traditional commission structures, making fees fully negotiable and eliminating the standard 5-6% rate. As detailed in a U.S. News analysis, buyers and sellers now negotiate commissions upfront, leading to varied outcomes. In Michigan, where affordability is a pressing issue, some buyers have successfully negotiated lower fees, particularly in less competitive markets. However, in Holland's seller-friendly market, agents often command higher commissions to ensure robust marketing and showings.

In Florida, the impact is less uniform. A Yahoo Finance article highlights that the settlement hasn't significantly reduced costs for most buyers and sellers. In high-demand areas like Tampa, competition among agents sustains higher commission rates. Yet, transparency tools, such as commission calculators available on platforms like Clever, are empowering consumers. These tools allow buyers to compare rates and negotiate with confidence, aligning with the settlement's push for clarity.

Misconceptions persist, however. Some buyers assume commissions are now “free” or drastically reduced, a myth debunked by a Realtor.com guide. Fees remain negotiable, and outcomes vary by region and market conditions. For sellers, lower commissions can mean fewer showings if agents prioritize higher-paying listings, a challenge that underscores the need for informed negotiation strategies.

Opportunities in a Tech-Driven Market

The 4.0% rise in pending sales signals opportunities for both consumers and real estate professionals. In Michigan, sellers in markets like Holland are leveraging digital listing platforms to reach wider audiences, while buyers use transparency tools to navigate commission structures. Proptech firms are seizing the moment, with one West Michigan startup reporting a 20% surge in platform usage since the NAR settlement. Virtual tours and digital escrow services are streamlining transactions, reducing paperwork and delays.

Florida's tech adoption is even more pronounced. From Tampa to Miami, buyers are using apps to compare commission rates and closing costs, while agents integrate transaction management software to stay competitive. The University of Florida's Bergstrom Center for Real Estate Studies forecasts continued growth in proptech adoption, particularly in high-growth markets. “Digital tools are now the backbone of real estate,” a researcher noted, emphasizing their role in driving efficiency and transparency.

For real estate professionals, the message is clear: embracing technology is essential. Platforms offering MLS access, virtual tours, and commission calculators are not just conveniences they're competitive necessities. As the industry adapts to the NAR settlement, agents who integrate these tools will likely thrive in both Michigan's steady markets and Florida's dynamic ones.

A Market Poised for Change

As twilight falls over Holland's quaint streets and Tampa's coastal high-rises, the 4.0% rise in pending home sales tells a story of adaptation and resilience. In Michigan, affordability challenges and tech adoption are shaping a cautious but hopeful market. In Florida, demographic shifts and digital tools are driving growth, tempered by insurance costs. The NAR settlement, while complex, has sparked a vital conversation about transparency, choice, and fairness in real estate.

Looking ahead, the NAR's next report, due October 29, 2025, will shed light on whether this momentum persists. For now, buyers and sellers in Michigan and Florida are charting a new course one where lower mortgage rates, digital innovation, and negotiable commissions are reshaping the journey to homeownership. As a Holland buyer reflected, “It's a lot to navigate, but with the right tools, it feels like the market is finally opening up.”

For those entering the market, the advice is straightforward: leverage technology, understand commission structures, and stay informed. The real estate landscape of 2025 is dynamic but full of possibility, and those who adapt will find themselves at home. 

Frequently Asked Questions

Why did pending home sales increase 4.0% in August 2025?

The 4.0% increase in pending home sales was primarily driven by declining mortgage rates, which made financing more affordable for buyers across the country. According to NAR Chief Economist Lawrence Yun, these lower rates attracted more buyers into the market, particularly in the Midwest where cost advantages are most pronounced. Additionally, the ongoing adaptation to the 2024 NAR settlement and increased use of proptech platforms have streamlined the homebuying process, contributing to the surge in signed contracts.

How has the 2024 NAR settlement affected real estate commissions for buyers and sellers?

The 2024 NAR settlement eliminated the standard 5-6% commission rate and made all fees fully negotiable between parties. In Michigan's less competitive markets, some buyers have successfully negotiated lower commissions, while in seller-friendly areas like Holland, agents often maintain higher rates to ensure robust marketing. However, in high-demand Florida markets like Tampa, competition among agents has kept commission rates elevated, and the settlement hasn't significantly reduced costs for most buyers and sellers despite increased transparency.

What role is technology playing in the August 2025 housing market surge?

Proptech platforms have become essential in driving the August surge, with tools like MLS integration, virtual tours, and digital escrow services significantly streamlining transactions. In Michigan, these platforms allow buyers to preview homes instantly and cut days off deal timelines, while in Florida, buyers use apps to sign contracts from their phones and compare commission rates in real-time. One West Michigan proptech startup reported a 20% surge in platform usage since the NAR settlement, highlighting how digital tools have become the backbone of modern real estate transactions.

Disclaimer: The above helpful resources content contains personal opinions and experiences. The information provided is for general knowledge and does not constitute professional advice.

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Home buying or selling shouldn't mean paying for services you don't use or need. Now, with new rules, you can choose exactly what you pay for. Side Door's smart match engine connects you with vetted agents offering flexible service levels, so you pay only for what you use. Keep the guidance, skip the extras, and save thousands and still get the keys in hand. Join Side Door for FREE today!

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