NAR released a summary of pending home sales data showing that April’s pending home sales pace was down 1.3 percent last month and fell 2.1 percent from a year ago.
Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by 1 to 2 months.
Three of the four regions showed declines from a year ago. The South, which led all regions in sales, had an incline of 2.7 percent. The Northeast had the biggest drop in sales of 7.0 percent. The Midwest fell 5.1 percent followed by the West with a decline of 4.6 percent.
From last month, three of the four regions showed declines in sales. The Northeast region was flat. The West fell 0.4 percent followed by the South with a decline of 1.0 percent. The Midwest had the largest decline of 3.2 percent.
The U.S. pending home sales index level for the month was 106.4. March’s data was revised up to 107.8.
In spite of the decline, this is the pending index’s 48th consecutive month over the 100 level.
The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing home sales above the 5 million mark.