WASHINGTON – the Americans withdrew from signing contracts to buy homes in April for the second consecutive month, a possible sign that a reduction of the number of homes on the market are stifling sales during the traditional spring buying season.
The National Association of Realtors said Wednesday that the pending home sales index fell 1.3 percent in April to 109.8, after slipping 0.9 percent in March, to 111.3. The index fell from 3.3 percent in the past 12 months.
Potential buyers are crowding open houses in many neighborhoods, because there are less sales offers. Rising home values have not led to more people their properties for sale, in contrast to the expectations of many economists is that the high demand would lead to an increase of the deliveries. The number of properties for sale has plunged 9 per cent over the past year to 1.93 million, according to the Brokers in a separate report from last week.
Pending sales contracts are a barometer of future purchases. A sale is usually a month or two after a contract is signed.
Contracts were signed in April, fell in the Midwest and the South, remained unchanged in the West and increased in the Northeast.