The pending home sales is the main gauge for the housing division created on pending sales of existing homes. The home sale is marked as pending when an agreement has signed, but the business deal has not closed, however, sale typically completed within one or two months of signing. The pending home sales index is based on actual nationwide samples of existing homes, typically representing about 20% of transactions.
According to the National Association of Realtors, brought on by the coronavirus pandemic, the pending home sales decline 21.8% in April, making two straight months of deterioration. Almost every main area experienced a decline in month over month and dropped in year over year pending home sale contacts.
Lawrence Yun, the chief economist of National Association of Realtor, said that “it is no wonder to see prominently condensed activity in signing contracts for home purchases with approximately all states under stay at home orders in April.” It is record decline in number since the National Association of Realtor starts chasing such connections in January 2001.
However, Lawrence Yun believes that April will be the lowest point for pending home sales contracts and month of May subsequently will be the lowermost point for closed sales. In the coming months, as states reopen and more consumer will feel comfortable about purchasing homes, the buying activity will rise.
The most recent flash survey of National Association of Realtor mark that buyer’s comfortability may be rising and effectively finishing almost all phases of pending home sales transaction while following to societal distancing measures.