Pending home sales did not register any change in April
Discover the latest figures for pending home sales in April. According to the National Association of Realtors, there was no change in pending sales for the month.
The Pending Home Sales Index (PHSI)*, a leading indicator of home sales based on contract signings, remained at 78.9 in April, unchanged from compared to the previous month. Compared to the previous year, pending transactions decreased by 20.3%. An index of 100 is equal to the level of contract activity in 2001.
"Due to the shortage of inventory, not all purchase intentions are being realized," Lawrence Yun, NAR Chief Economist. "Affordability challenges certainly continue to hamper contract signings, but a significant increase in housing inventory will be helpful. "It is essential for more Americans to move."
Regional breakdown of pending home sales Northeast PHSI decreased It decreased 11.3% from last month to 59.1, representing a decrease of 21.8% compared to April 2022. The Midwest index improved It decreased 3.6% in April, reaching 78.4, but still a decrease of 21.4% compared to the previous year.
The South's PHSI increased 0.1% in April to 99.6, but fell 16.7% compared to the previous year. The West index increased It fell 4.7% in April to 62.2, but was down 26.0% compared to April 2022.
"Minor monthly variations in regional activity are typical,' Yun said. "However, the cumulative results over the years clearly indicate a much higher number of home sales in the South.".
With a PHSI of 99.6, the South is in the lead. just below 100, which is equal to the average level of contract activity during 2001, the first year the NAR analyzed the PHSI.
"Pending home sales activity in the South is similar to 2001, but activity in the Midwest is down 22% over the same period, and the Northeast and West regions are down 22%. "Approximately 40% below what they were in 2001," he added. Yun.
About the National Association of Realtors The National Association of Realtors (NAR) is the largest trade association in the United States, representing more than 1.5 million involved members in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered membership collective mark that identifies a real estate professional who is a member of the National Association of Realtors and adheres to its strict Code of Ethics.
*The Pending Home Sales Index is a leading indicator for the real estate sector, based on pending sales of existing homes. A sale is considered pending when the contract has been signed but the transaction has not been closed, although it is usually completed within one or two months after signing.
Pending contracts are good early indicators of future closed sales. However, the time between pending contracts and completed sales is not identical for all home sales. Variations in the length of the process, from pending contract to closed sale, can be caused by issues such as buyer difficulties obtaining mortgage financing, home inspection problems, or appraisal issues. p>
The index is based on a sample that covers approximately 40% of the multiple listing service data each month. In developing the model for the index, it was demonstrated that that the level of monthly activity of sales contracts is correlated with the level of closed sales of existing homes in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year examined. By coincidence, existing home sales volume in 2001 was within the range of 5.0 to 5.5 millions, which is considered normal for the current population of the United States.
NOTE: Existing home sales for May will be reported on June 22. The next Pending Home Sales Index will be released on June 22. on June 29. All launch times are 10 a.m. Eastern Time. Consult the NAR statistical publications calendar.