Contracts executed for the sale of pre-owned single-family properties diminished last month. But a sharp increase was reported for the West.
For April 2017, the Pending Home Sales Index, which is a forward-looking indicator based on contract signings, worked out to 109.8.
Compared to the prior month, the inventory of pending home sales retreated more than a percent. It was off more than 3 percent from a year prior.
The index was reported Wednesday by the National Association of Realtors.
NAR chief economist
Lawrence Yun explained in the report that activity is fading due to significantly weak supply levels that are hurting affordability conditions.
“Much of the country for the second straight month saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market,” Yun said. “Realtors are indicating that foot traffic is higher than a year ago, but it’s obviously not translating to more sales.”
The index declined 5 percent from March in the Midwest to 104.4, giving the region the steepest drop.
Pending home sales were off 3 percent in the South, leaving that index at 125.9, and the Northeast index fell 2 percent to 97.2
Only the West’s index increased, by a whopping 6 percent to 100.0 as of last month.
