The National Association of Realtors are reporting that with nearly all states under stay-at-home orders pending home sales dropped 21.8% in April. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) dropped to 69.0 with every major region experiencing a drop in month-over-month contract activity. In addition, they reported that year-over-year contract signings were down 33.8%. However, the NAR remains optimistic in their outlook. Indeed….
“With nearly all states under stay-at-home orders in April, it is no surprise to see the markedly reduced activity in signing contracts for home purchases…While coronavirus mitigation efforts have disrupted contract signings, the real estate industry is ‘hot’ in affordable price points with the wide prevalence of bidding wars for the limited inventory…In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.” Said Lawrence Yun, NAR’s chief economist.