- Overall Decline in Pending Home Sales:
- Pending home sales in April fell 7.7%.
- All four U.S. regions registered month-over-month and year-over-year decreases.
- Pending Home Sales Index (PHSI):
- The PHSI, a forward-looking indicator of home sales based on contract signings, decreased to 72.3 in April.
- Year over year, pending transactions were down 7.4%.
- An index of 100 is equal to the level of contract activity in 2001.
- Impact of Interest Rates:
- Escalating interest rates throughout April dampened home buying despite more inventory in the market.
- The Federal Reserve’s anticipated rate cut later this year should improve conditions, affordability, and supply.
- Regional Breakdown:
- Northeast: PHSI fell 3.5% from last month to 62.9, a decline of 3.1% from April 2023.
- Midwest: Index dropped 9.5% to 70.7 in April, down 8.7% from one year ago.
- South: PHSI lowered 7.6% to 88.6 in April, dropping 8.2% from the prior year.
- West: Index decreased 8.5% in April to 55.9, down 7.3% from April 2023.
- Home Prices and Supply:
- Home prices are hitting record highs, but the pace of gains should decelerate with more supply.
- Measurable home price declines are minimal.
- Markets experiencing price declines may offer second-chance opportunities for buyers if those regions continue to add jobs.
Source: NAR
