Home expected to sell in April 2024
WASHINGTON, May 30, 2024 (GLOBE NEWSWIRE) — Key highlights
-
Pending home sales fell 7.7% in April.
-
The number of deals signed was down in all regions compared to the previous month and a year ago.
-
The Midwest and West saw the largest monthly declines.
According to the National Association of Realtors, home sales contracts fell 7.7% in April. All four regions of the U.S. recorded declines both month-over-month and year-over-year.
of Pending Home Sales Index (PHSI)* The index, a measure of future home sales based on the number of contracts signed, fell to 72.3 in April. Year-over-year, pending transactions were down 7.4 percent. An index of 100 corresponds to the level of contract activity in 2001.
“Home buying slowed during April as interest rates rose, even as inventory increased on the market,” NAR chief economist Lawrence Yun said. “But the Federal Reserve’s planned rate cuts later this year should improve homebuying and boost supply, which should help the situation.”
Pending home sales by region
The Northeast PHSI fell 3.5% month-over-month to 62.9, down 3.1% from April 2023. The Midwest index fell 9.5% in April to 70.7, down 8.7% from a year ago.
The Southern PHSI fell 7.6% in April to 88.6, a decline of 8.2% from a year ago. The Western Index fell 8.5% in April to 55.9, a decline of 7.3% from April 2023.
“Home prices have reached record highs, but the pace of increase should slow as supply increases,” Yoon said. “However, the likelihood of a visible home price decline is minimal. Some markets experiencing price declines could be viewed as a second chance for buyers to enter the market if job growth continues in those areas.”
About the National Association of Realtors®
National Association of Realtors® is America’s largest trade association, with 1.5 million members involved in all areas of the residential and commercial real estate industry.® It is a registered collective membership mark that identifies real estate professionals who are members of the National Association of REALTORS.® We adhere to a strict code of ethics.
# # #
*The Pending Home Sales Index is a leading indicator for the housing sector based on the number of pending sales of existing homes. A sale is listed as pending if a contract has been signed but the transaction has not yet closed, however, sales typically close within one to two months of signing.
A pending sale is a good early indicator of an upcoming closing. However, the length of time from pending sale to closing is not the same for all home sales. Variations in the length of the pending sale to closing process could be due to issues such as a buyer having difficulty obtaining mortgage financing, home inspection issues, appraisal problems, etc.
The index is based on a sample covering approximately 40% of the monthly multiple real estate information service data. In developing the index model, it was demonstrated that the level of monthly sales contract activity corresponds to the level of existing home sales closings over the following two months.
An index of 100 corresponds to the average level of contract activity in the first year covered in the study, 2001. Coincidentally, existing home sales in 2001 fell in the range of 5 million to 5.5 million, which is considered normal for the current U.S. population.
Notes: Existing Home Sales for May will be released on June 21. The next Pending Home Sales index will be released on June 27. All release times are at 10:00 AM Eastern Time. NAR Statistics News Release Schedule.
Information about NAR can be found at: Real estate agentThis and other news releases can be found in our newsroom at: nar.realtor/Newsroom. The statistical data for this release, as well as other tables and studies, can be found under the Research and Statistics tab.
Attachments
CONTACT: Lauren Cozzi National Association of REALTORS® 202/383-1178 LCozzi@nar.realtor
