To better understand the April 2018 pending home sales report, it is important to understand that between the time an offer is accepted and the deal is closed, a home’s sale is typically referred to as pending. That’s because, there’s a chance, during this period, that the sale won’t go through, as there are some hurdles yet to clear.
The buyer’s loan and financing have to be finalized, and steps like the home inspection and appraisal can also alter the terms of the deal or end it altogether. In short, buying a home is a significant transaction, and there’s usually a few weeks between the contract signing and closing.
For that reason, the National Association of Realtors tracks pending home sales each month, as they can be a good indicator of how future home sales will look. According to their most recent report, pending home sales fell 1.3 percent for the month of April, with most regions flat from the month before. The slight decline was mostly due to a drop in the Midwest.
April 2018 Pending Home Sales
Still, the April 2018 pending home sales report is an indication that inventory levels in much of the country are holding sales back. With a fewer-than-normal number of homes for sale, buyers are having more difficulty locating the right house and, as a result, the number of home sales has not matched the level of demand.