The National Association of Realtors (NAR) reported Thursday that its
seasonally adjusted pending home sales index (PHSI) remained unchanged at 78.9 in April, following an unrevised 5.2 percent m-o-m plunge in Match.
Economists had expected pending home sales to rise 1.0 percent m-o-m in April.
On y-o-y basis, the index tumbled 20.3 percent after an unrevised 23.2 percent decline in March. This marked the 23rd
consecutive y-o-y decrease in pending home sales.
According to the report, three of four major U.S. regions posted
m-o-m advances in pending home sales operations in April, but all of them showed
The indicator gauging pending home sales transactions in the West demonstrated
the largest m-o-m gain in April of 4.7 percent. On a y-o-y basis, the West PHSI,
however, slumped by 26.0 percent. It was followed by the Midwest PHSI, which logged
an increase of 3.6 percent m-o-m. In y-o-y terms, the indicator plummeted by
21.4 percent. The South PHSI edged up 0.1 percent m-o-m but sank 16.7 percent
y-o-y. Meanwhile, the Northeast PHSI fell by 11.3 percent m-o-m and by 21.8 percent
Commenting on the latest report, Lawrence Yun, NAR’s chief economist, noted
that not all buying interests are being completed due to limited inventory, "Affordability
challenges certainly remain and continue to hold back contract signings”, he said,
adding that a sizeable increase in housing inventory will be critical to get
more Americans moving.