Pending Home Sales Fell 1.5% in April
Washington, DC, May 30, 2019-The Pending Home Sales Index fell 1.5% to 104.3 in April, down from 105.9 in March, according to the National Association of Realtors.
Year-over-year contract signings declined 2.0%, making this the 16th straight month of annual decreases.
Lawrence Yun, NAR chief economist, said the sales dip has yet to account for some of the more favorable trends toward homeownership, such as lower mortgage rates. "Though the latest monthly figure shows a mild decline in contract signings, mortgage applications and consumer confidence have been steadily rising,” he said. “It’s inevitable for sales to turn higher in a few months."
"Home price appreciation has been the strongest on the lower-end as inventory conditions have been consistently tight on homes priced under $250,000. Price conditions are soft on the upper-end, especially in high tax states like Connecticut, New York and Illinois." The supply of inventory for homes priced under $250,000 stood at 3.3 months in April, and homes priced $1 million and above recorded an inventory of 8.9 months in April.
Citing active listings from data at realtor.com, Yun says the year-over-year increases could be a sign of a rise in inventory. San Jose-Sunnyvale-Santa Clara, California, Seattle-Tacoma-Bellevue, Washington, San Francisco-Oakland-Hayward, California, Portland-Vancouver-Hillsboro, Oregon-Washington, and Nashville-Davidson-Murfreesboro-Franklin, Tennessee, saw the largest increase in active listings in April compared to a year ago.
"We are seeing migration to more affordable regions, particularly in the South, where there has been recent job growth and homes are more affordable," Yun said.