The National
Association of Realtors (NAR) reported on Thursday its seasonally adjusted
pending home sales index (PHSI) plunged by 7.7 per cent m-o-m to 72.3 in April, following a downwardly revised 3.6 per cent m-o-m jump (from +3.7
per cent m-o-m) in March. This marked the steepest decline in pending home sales since April
2020 (-20.9 per cent m-o-m).
Economists had expected
pending home sales to decrease 0.6 per cent m-o-m in April.
On a y-o-y basis,
the index tumbled 7.4 per cent after an unrevised 0.1 per cent uptick in March.
According to
the report, pending home sales operations plummeted in the Midwest (-9.5 per
cent m-o-m), West (-8.5 per cent m-o-m), South (-7.6 per cent m-o-m) and Northeast
(-3.5 per cent m-o-m). Compared to April
2024, all four U.S. regions also posted declines, led by the Midwest (-8.7 per
cent y-o-y).
Commenting on
the latest report, Lawrence Yun, NAR’s chief economist, noted that the impact
of escalating interest rates throughout April dampened home buying, even with
more inventory in the market. “But the Federal Reserve's anticipated rate cut
later this year should lead to better conditions, with improved affordability
and more supply," he added.