Pending home sales in the South took a step back in April, marking the first monthly decline in three months, according to new data from the National Association of Realtors.
- The Pending Home Sales Index (PHSI) for the region dropped 7.7% to 85.9, a reversal from gains in February and March.
- The index is based on contract signings and acts as a forward-looking indicator for existing home sales.
Nationally, pending home sales were also down. The overall PHSI fell 6.3% to 71.3, the lowest level since January.
- Other regions saw similarly steep drops: the Midwest declined 5.0% to 73.5, the Northeast fell 3.0% to 62.1, and the West plunged 8.9% to 53.3, making it the weakest market in the nation.
What They’re Saying: Lawrence Yun, Chief Economist at the NAR, pointed to mortgage rates as the key drag on demand. “Despite an increase in housing inventory, we are not seeing higher home sales,” Yun said. “Lower mortgage rates are essential to bring home buyers back into the housing market.”
Bottom Line: Unless rates fall back into the mid to low 6s, it could be a slow summer for housing.
