Pending Sales in May 2024 Hit a New Low

NAR released a summary of pending home sales data showing that May’s pending home sales fell 2.1% from last month and decreased 6.6% from a year ago.

Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by 1 to 2 months.

All four regions showed declines from a year ago. The South region had the biggest decrease of 10.4%, followed by the Midwest with a decline of 5.6%. The Northeast fell 2.3%, followed by the West with a reduction in sales of 2.1%.

Compared to last month, two of the four regions showed increases in contract signings. The West had the biggest incline of 1.4%, followed by the Northeast with an increase of 1.1%. The South had the biggest decline of 5.5%, and the Midwest had a drop in contracts of 0.4%.

The U.S. pending home sales index level for the month of May was 70.8. April’s pending sales figures were 72.3.

May’s contract signings brought the pending home sales index below the 100-level mark for the 26th consecutive month.

The 100 level, based on a 2001 benchmark, serves as a crucial reference point, consistent with existing-home sales above the 5 million mark.