In April, the pending home sales index from the National Association of Realtors decreased 1.3 percent from the previous month and 3.3 percent from the previous year to a level of 109.8.
According to MarketWatch, economists had predicted a 0.5 percent increase in April. The index forecasts future sales by counting real estate transactions that are in between signing and closing.
April’s index indicates that the housing market is still underperforming.
Housing inventory is tightening and affordability declining, nudging contract activity down. Homes are coming off the market much more quickly than new listings are being added, NAR Chief Economist Lawrence Yun noted in a release.