U.S. pending home sales lose momentum

TRD New York /
May.May 27, 2011 04:10 PM

Pending home sales declined in April with regional variations following increases in February and March, according to April’s Pending Home Sales Index, released today by National Association of Realtors. The index, a forecasting indicator for the housing sector based on contract signings on existing homes, declined 11.6 percent to 81.9 in April from a downwardly revised 92.6 in March. The index is 26.5 percent less than the cyclical peak of 111.5, reached in April 2010, when buyers we scurrying to beat the contract deadline for the first time home buyer tax credit, the NAR said. Lawrence Yun, the NAR’s chief economist says the dip in contracts may be due to temporary factors including rising oil price, widespread severe weather with the heaviest precipitation in 20 years and a sudden hike in unemployment claims. He also identifies tight credit as the primary long-term factor hindering the market. The one region that showed gains in the pending home sales index was the Northeast, which gained 1.7 percent to reach 64.5 in April — still 33.4 percent lower than the index a year ago. “Even with very favorable affordability conditions, job growth and a pent-up demand from abnormally low household formation during the past three years, the recovery will continue to be uneven and sluggish given the ongoing credit constraints,” Yun said. TRD


Related Articles

arrow_forward_ios
NAR CEO Bob Goldberg (iStock; NAR)

NAR’s motion to dismiss broker fee lawsuit shut down

NAR’s motion to dismiss broker fee lawsuit shut down
Sales of existing homes in the U.S. hit a 14-year high last month, according to a new report. (iStock)

US home sales hit 14-year high

US home sales hit 14-year high
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
Long live NAR: Agents won’t defy powerful trade group in pocket listings spat

Long live NAR: Agents won’t defy powerful trade group in pocket listings spat

Long live NAR: Agents won’t defy powerful trade group in pocket listings spat
CAP: NAR President Vince Malta and TAN founder David Faudman (Credit: YouTube, NAR, iStock)

Pushback over going “clear”: NAR sued for pocket listing ban

Pushback over going “clear”: NAR sued for pocket listing ban
Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat
US home sales slide again in June as prices hit all-time high

US home sales slide again in June as prices hit all-time high

US home sales slide again in June as prices hit all-time high
(Credit: iStock)

US existing home sales bounce back in May as spring buying season heats up: report

US existing home sales bounce back in May as spring buying season heats up: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...