Pending home sales fell 4.4% in April compared with March but were up 51.7% compared with April 2020, according to the National Association of Realtors (NAR).
Month-over-month, pending home sales decreased 12.9% in the Northeast, 6.1% in the South, and 2.6% in the West. Sales increased 3.5% in the Midwest.
Year-over-year, sales increased by double digits in all four regions.
However, it should be noted that the large annual increases are due to the fact that the pandemic’s impact on housing peaked in April 2020.
“Contract signings are approaching pre-pandemic levels after the big surge due to the lack of sufficient supply of affordable homes,” says Lawrence Yun, chief economist for NAR, in a statement. “The upper-end market is still moving sharply as inventory is more plentiful there.”
Yun anticipates housing supply to improve by this autumn, which, in turn, should help stabilize prices and improve affordability.
“The Midwest region, which has the most affordable homes, was the only region to notch a gain in the latest month,” Yun notes. “Some buyers from the expensive cities in the West and Northeast, who have the flexibility to move and work from anywhere, could be opting for a larger-sized home at a lower price in the Midwest.”
Photo: Cytonn Photography