Kevin Sears President | Official website
Pending home sales in the United States saw a decline of 6.3% in April, as reported by the National Association of REALTORS (NAR). The decrease was observed across all four U.S. regions when compared to the previous month. However, on a year-over-year basis, contract signings increased in the Midwest while they fell in the Northeast, South, and West. The West experienced the most significant drop.
The Pending Home Sales Index (PHSI), which serves as an indicator based on contract signings, fell to 71.3 in April—a 6.3% decrease from March and a 2.5% decline from the same period last year. "At this critical stage of the housing market, it is all about mortgage rates," stated NAR Chief Economist Lawrence Yun. He emphasized that despite more housing inventory being available, lower mortgage rates are crucial for encouraging home buyers to re-enter the market.
In terms of regional performance, the Northeast's PHSI decreased by 0.6% from March to 62.1 and was down by 3.0% compared to April 2024. The Midwest saw its index fall by 5.0% to 73.5 but managed a year-over-year increase of 2.2%. In contrast, the South's index dropped by 7.7% to 85.9 and declined by 3.0% over one year, while the West's index decreased by 8.9% from March to reach 53.3—down by 6.5% compared to April last year.
Yun also pointed out that "home buyers have a better chance to purchase homes in affordable regions such as the Midwest," where prices are significantly below the national median home price.
The National Association of REALTORS is recognized as America's largest trade association and plays an active role in both residential and commercial real estate sectors.
