The Pending Homes Sales Index, a forward-looking indicator based on contract signings and not closings, fell a steep 11.6% to 81.9 in April, signaling that weakness in existing homes sales is likely to surface near the end of May and into June.
Blaming an economic soft patch in April caused by “sharply rising oil prices, widespread severe weather with the heaviest precipitation in 20 years, and a sudden rise in unemployment claims,” the NAR expressed disappointment and said the pullback implies a slower than expected market recovery in upcoming months.
And the leading organization for realtors continued to press banks to loosen what it considers to be overly tight credit standards.
Weather can be a factor as any realtor will tell you, but softer growth over the past couple of months, still-tight credit and the uncertainty over where housing prices may be headed are likely playing the biggest roles in the lackluster housing market.
A stronger economy, significant job creation, much better consumer confidence and stability in home prices would go a along way in curing what ails the market.
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