The Pending Home Sales Index from The National Association of Realtors (NAR) is a leading indicator for the housing sector based on pending sales of existing homes. A sale is pending if a contract has been signed, but the sale has not yet closed. Typically, these sales close within two months of a contract signing.
The latest Pending Home Sales Index for April came in at 78.9, which was unchanged from the March figure and worse than forecast. Year-over-year (YoY) pending sales fell in all four regions and dropped 20.3% overall. Three of four regions posted month-over-month (MoM) gains: the Midwest was up 3.6%, the South was up 0.1%, and the West was up 4.7%. These increases were offset by an 11.3% decrease in sales in the Northeast.
Here’s an excerpt from the latest press release:
“Not all buying interests are being completed due to limited inventory,” said NAR Chief Economist Lawrence Yun. “Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving.”