A home’s sale is considered pending once a contract to buy is signed. The sale isn’t final until closing. But since most pending sales end in finalized sales, contract signings can be an excellent gauge of current buyer demand – as well as a reliable future indicator of where next month’s existing-home sales numbers will fall. Because of this, the National Association of Realtors’ Pending Home Sales Index tracks contract signings each month. In April, pending sales were up 3.2 percent from last year and were 1.4 percent higher than March. The month-over-month improvement was seen across every region but the South, while the year-over-year increase was seen everywhere but the Northeast. Dr. Lawrence Yun, NAR chief economist, says buyers are cautious but optimistic. “Buyers are coming out with cautious optimism despite increasing economic uncertainty and a slight rise in mortgage rates,” Yun said. “Demand will easily be even higher once mortgage rates retreat to the levels they were at earlier this year.” (source)
