Pending Home Sales Plummet in April

Pending home sales plummeted in the South in April after two straight months in the green, according to the National Association of Realtors.

Still On Top: The South experienced a notable 7.3% drop from March and fell to the lowest level since January. However, despite the drop, the South led all regions with the highest index at 88.6 in April.

Regional breakdown:

• Midwest: Ranking second, the Midwest saw its index fall to 70.7, a decrease of 9.5%.
• Northeast: The index here declined by 3.5% to 62.9.
• West: Tied with the South for the largest percentage decline, the West’s index decreased by 7.3% to 55.9.

Top Line Number: The national index plummeted by 7.7% to 72.3, far surpassing economists’ projections of a modest 0.6% decline.

What They’re Saying: Lawrence Yun, NAR’s Chief Economist, highlighted the challenges facing the market: “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.”