The index of pending home sales in the US housing market in April fell by 33.8%
The index of pending home sales in the US secondary housing market (pending home sales) in April 2020 fell by 33.8% compared to the same month of the previous year despite the crisis caused by the pandemic coronavirus infection COVID-19. The drop was a record since the beginning of tracking this data by the National Association of realtors (NAR) in 2001. The decline in comparison with March was 21.8%, also becoming the record.
The index is a leading indicator of activity in the real estate market. Pending sales – those for which contracts have already been signed, but the deal has not closed. Usually at the end of it goes from 4 to 6 weeks.
In March the index stood at 16.3% yoy and 20.8% from the previous month.
The most serious decline in real estate sales in April was marked in the North-East, USA – 48.2 per cent compared to the previous month. This is probably due to the fact that new York, which is the region most affected by the pandemic coronavirus.
“Despite the fact that the restrictive measures to contain the spread of coronavirus, a negative impact on the signing of contracts, the real estate market remains a hot segment of the most affordable housing, says NAR chief economist Lawrence Yun. In the coming months, the activity of buyers will increase, as restrictions are removed”.