W
ASHINGTON (May 29, 2025) – The National Association of REALTORS reported a 6.3% decline in pending home sales for April, with all four U.S. regions experiencing month-over-month losses. Year-over-year, contract signings rose in the Midwest but decreased in the Northeast, South, and West, with the West suffering the greatest loss.
The Pending Home Sales Index (PHSI) dropped to 71.3 in April, a 6.3% decrease from March. Compared to last year, pending transactions fell by 2.5%. NAR Chief Economist Lawrence Yun attributed this trend to mortgage rates: "At this critical stage of the housing market, lower mortgage rates are essential to bring home buyers back into the market."
Regional Breakdown:
* The Northeast PHSI decreased 0.6% from last month to 62.1, down 3.0% from April 2024.
* The Midwest index rose 2.2% from the previous year to 73.5 in April.
* The South PHSI sank 7.7% to 85.9 in April, down 3.0% from a year ago.
* The West index degraded 8.9% from the prior month to 53.3, down 6.5% from April 2024.
Yun noted that home buyers have a better chance of purchasing homes in affordable regions like the Midwest, where the typical home price is $313,000 – 25% below the national median home price. With housing inventory levels reaching five-year highs, home buyers can negotiate more favorable terms.
The National Association of REALTORS is America's largest trade association, involved in all aspects of residential and commercial real estate. The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. An index of 100 is equal to the average level of contract activity during 2001.
The next Pending Home Sales Index will be released on June 26, while Existing-Home Sales for May will be reported on June 23.
