Pending Homes Sales Steady at 78.9 in April
Washington, DC, May 25, 2023-The Pending Home Sales Index (PHSI) remained at 78.9 in April, posting no change from the previous month, according to the National Association of Realtors. Year over year, pending transactions dropped by 20.3%. An index of 100 is equal to the level of contract activity in 2001.
"Not all buying interests are being completed due to limited inventory," said NAR chief economist Lawrence Yun. "Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving."
The Northeast PHSI dropped 11.3% from last month to 59.1, a decrease of 21.8% from April 2022. The Midwest index improved 3.6% to 78.4 in April, down 21.4% from one year ago.
The South PHSI increased 0.1% to 99.6 in April, sinking 16.7% from the prior year. The West index augmented 4.7% in April to 62.2, sliding 26.0% from April 2022.
"Minor monthly variations in regional activity are typical," said Yun. "However, cumulative results over many years clearly point towards a much greater number of home sales in the South."
At 99.6, the PHSI in the South is only slightly lower than 100, which is equal to the average level of contract activity during 2001, the first year NAR analyzed the PHSI.
"The South's pending home sales activity is similar to that of 2001, but the Midwest's activity has decreased by 22% in that same period, and the Northeast and West regions are both about 40% lower than they were in 2001," Yun added.