The National Association of Realtors’ Pending Home Sales Index tracks the number of contracts to buy homes signed each month. Contract signings are considered a forward-looking indicator of future home sales because a home’s sale isn’t typically finalized until several weeks after the contract to buy is signed. That means any increase or decrease in the NAR’s Pending Home Sales Index is likely to show up in future existing-home sales data. In April, the index found signings down 6.3 percent from March. Lawrence Yun, NAR’s chief economist, says home buyers’ position is improving despite the decline. “Home buyers have a better chance to purchase homes in affordable regions such as the Midwest, where the typical home price is $313,000 – 25 percent below the national median home price,” Yun said. “Moreover, with housing inventory levels reaching five-year highs, home buyers in nearly every region of the country are in a better position to negotiate more favorable terms.” Regionally, sales increased from last year in the Midwest, remained flat in the Northeast, and fell in the South and West. (source)
