Pending home sales in April decreased 7.7%, according to the National Association of Realtors, with all four U.S. regions registering month-over-month and year-over-year decreases.
The Pending Home Sales Index (a forward-looking indicator of home sales based on contract signings) decreased to 72.3 in April (an index of 100 is equal to the level of contract activity in 2001).
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said NAR Chief Economist Lawrence Yun in a statement. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
“Home prices are hitting record highs, but the pace of gains should decelerate with more supply,” Yun added. “However, the prospect of measurable home price declines appears minimal. The few markets experiencing price declines will be viewed as second-chance opportunities for buyers to enter the market if those regions continue to add jobs.”
