West: PHSI increased 5.8 percent in April to 100.0, 4.2 percent lower than the same time previous year. The number of properties for sale has plunged 9 percent over the past year to 1.93 million, according to the Realtors in a separate report last week. "To date, there are no indications investors are ready to sell".
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.17 percent.
By region, April pending home sales decreased by 1.9% to an index score of 97.2 in the Northeast, down 0.6% compared with April 2016.
On a longer-term view, Yun warned that owners who had bought to let during the crisis should he mindful that in five years' time the number of young adults was expected to shrink.More news: California sea lion grabs girl from dock and pulls her underwater
Pending home sales in the South declined 2.7 percent to an index of 125.9 in April and are now 2.3 percent below last April.
According to April's Realtors Confidence Index, the Buyer Traffic Index registered at 75 in April 2017 (74 in March 2017; 70 in April 2016).
Pending sales of USA homes slumped in April as tight inventories and higher prices produced the first year-over-year decline in signed contracts for existing homes in five months. The index reflects signed contracts, not sales closings.
The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is typically completed a month or two after a contract is signed.
Coming on the heels of recent data showing a drop in home building and sales of both new and previously owned homes, the decrease in contracts suggests a moderation in housing activity. The dollar fell against a basket of currencies, while U.S. Treasury prices were trading higher.