NAR: Pending Home Sales Recorded No Change in April 2023

According to the National Association of REALTORS, pending house sales were unchanged in April.

Three U.S. areas increased month over month, while the Northeast fell. Transactions fell in all four regions year over year.

The Pending Home Sales Index (PHSI), a forward-looking barometer of home sales based on contract signings, remained unchanged in April at 78.9. Pending transactions decreased by 20.3% year on year.

A score of 100 represents the degree of contract activity in 2001.

“Not all buying interests are being completed due to limited inventory,” NAR Chief Economist Lawrence Yun stated.

“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.”

Pending Home Sales Regional Breakdown

The Northeast PHSI fell 11.3% from the previous month to 59.1, representing a 21.8% reduction from April 2022.

The Midwest index rose 3.6% to 78.4 in April, down 21.4% from the previous year.

The South PHSI rose 0.1% to 99.6 in April, but fell 16.7% from the previous year.

The West index increased 4.7% in April to 62.2, a decrease of 26.0% from April 2022.

“Minor monthly variations in regional activity are typical,” Yun added.

“However, cumulative results over many years clearly point towards a much greater number of home sales in the South.”

The PHSI in the South, at 99.6, is only slightly lower than 100, which corresponds to the average level of contract activity in 2001, the first year NAR studied 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 continued.