According to the National Association of REALTORS®, there was no change in pending home sales during April. While three regions in the United States experienced monthly gains, the Northeast saw a decrease. However, all four regions witnessed a decline in transactions compared to the previous year.
In April, the Pending Home Sales Index (PHSI)*, which provides insights into future home sales based on contract signings, remained steady at 78.9, indicating no change from the previous month. Compared to the same period last year, pending transactions decreased by 20.3%. It’s worth noting that an index value of 100 corresponds to the level of contract activity in 2001.
“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.”