The Pending Home Sales Index decreased 1.3 percent to a level of 109.8 in April from 111.3 in March and is 3.3 percent down compared with the level of 113.6 in April 2016, according to the National Association of Realtors.
This is the second-straight month the PHSI has decreased, and the first year-over-year decline since December 2016, the NAR said.
Contract activity this spring has faded because supply levels are weak and causing poor home affordability conditions, said NAR Chief Economist Lawrence Yun in a statement.
“Much of the country for the second straight month saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market,” he said. “Realtors are indicating that foot traffic is higher than a year ago, but it’s obviously not translating to more sales.”
The PHSI in the Northeast went down 1.7 percent to 97.2. In the Midwest, it declined 4.7 percent to 104.4. The South’s PHSI fell 2.7 percent to 125.9. The West saw its PHSI increase 5.8 percent to 100.
