Northeast Pending Home Sales Slumped 3.5% in April
WASHINGTON—U.S. pending home sales in April fell 7.7%, the National Association of Realtors reported on May 30. All four U.S. regions registered month-over-month and year-over-year decreases, although the Northeast posted the smallest decline for the month.
The Pending Home Sales Index—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.
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said NAR Chief Economist Lawrence Yun. “But the Federal Reserve's anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
Pending Home Sales Regional Breakdown
The Northeast PHSI fell 3.5% from last month to 62.9, a decline of 3.1% from April 2023. The Midwest index dropped 9.5% to 70.7 in April, down 8.7% from one year ago.
The South PHSI lowered 7.6% to 88.6 in April, dropping 8.2% from the prior year. The West index decreased 8.5% in April to 55.9, down 7.3% from April 2023.
“Home prices are hitting record highs, but the pace of gains should decelerate with more supply,” said Yun. “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.”
