The National Association of Realtors (NAR) released their Pending Home Sales report for April.
The report suggested that pending homes sales declined 5.5% when compared with the prior month. However, the report also implied that pending homes sales increased 14.4% from the same period last year.
Pending homes sales is an excellent indicator of the direction of the housing market. There is a strong correlation between an increase in pending home sales and actual sales volume. If supply remains constant, an increase in sales volume will directly result in rising home prices assuming there isn’t any major upward adjustment in interest rates, unemployment remains level, and there isn’t any sudden shock to the economy.
The following is a link to the NAR report: Pending Homes Sales Decline in April