April Pending Home Sales Plunge in Largest Decline Since 2001

Pending home sales sank 21.8% month-over-month in April and 33.8% year-over-year, the National Association of Realtors (NAR) reported. It is the largest decline since NAR began tracking national contract signings in 2001.

NAR Chief Economist Lawrence Yun said the reduced activity came as no surprise, as much of the country was under stay-at-home orders in April. Yun expects April to be the lowest point for pending home sales amid the COVID-19 crisis.

“While coronavirus mitigation efforts have disrupted contract signings, the real estate industry is ‘hot’ in affordable price points with the wide prevalence of bidding wars for the limited inventory,” Yun stated. “In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.”

Every region saw a pending home sales decline during the month, the largest drop recorded in the Northeast, which fell 48.2%. The West, Midwest and South fell 20.0%, 15.9% and 15.4%, respectively.

The full NAR report can be found here.