【World Property Journal】U.S. Pending Home Sales Slide 22 Percent in April

The National Association of Realtors is reporting this week U.S. pending home sales decreased in April 2020, making two straight months of declines caused by the Coronavirus outbreak. Every major region experienced a drop in month-over-month contract activity and a decline in year-over-year pending home sales transactions.

The Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, fell 21.8% to 69.0 in April. Year-over-year, contract signings shrank 33.8%. An index of 100 is equal to the level of contract activity in 2001.
 

"With nearly all states under stay-at-home orders in April, it is no surprise to see the markedly reduced activity in signing contracts for home purchases," said Lawrence Yun, NAR's chief economist.
 

The latest pending home sales numbers reveal the greatest decline since NAR began tracking such transactions in January 2001. However, Yun expects that April will be the lowest point for pending contracts, and the month of May, consequently, will be the lowest point for closed sales.
 

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