by Calculated Risk on 5/29/2025 10:00:00 AM
From the NAR: Pending Home Sales Declined 6.3% in April
Pending home sales decreased 6.3% in April, according to the National Association of REALTORS®. All four U.S. regions experienced month-over-month losses in transactions. Year-over-year, contract signings rose in the Midwest but descended in the Northeast, South and West – with the West suffering the greatest loss.
The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – dove 6.3% to 71.3 in April. Year-over-year, pending transactions retracted by 2.5%. An index of 100 is equal to the level of contract activity in 2001.
“At this critical stage of the housing market, it is all about mortgage rates,” said NAR Chief Economist Lawrence Yun. “Despite an increase in housing inventory, we are not seeing higher home sales. Lower mortgage rates are essential to bring home buyers back into the housing market.”
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The Northeast PHSI decreased 0.6% from last month to 62.1, down 3.0% from April 2024. The Midwest index condensed 5.0% to 73.5 in April, up 2.2% from the previous year.The South PHSI sank 7.7% to 85.9 in April, down 3.0% from a year ago. The West index degraded 8.9% from the prior month to 53.3, down 6.5% from April 2024.
emphasis added
Note: Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in May and June.