Fewer Americans signed contracts to buy homes in April as supply shortage continued to thwart buyers
Silver Spring, Md. – Fewer Americans signed a contract to buy a home in April as there would be buyers due to supply shortages.
The National Association of Realtors’ index of pending home sales fell 4.4% to 106.2 in April, the third straight sluggish month since a year-long rebound from the depths of the epidemic. The fall this month was more than economists had expected in the summer.
While many people are looking to upgrade, there are not as many who are ready to pack and leave their existing homes, resulting in a record low number of homes on the market. Lack of inventory – coupled with skyrocketing costs for building materials such as wood – has led to new and existing house prices to record highs.
Within the past week, separate reports have revealed that sales of both previously occupied homes and new homes fell in April. Another report indicated that the price increase in March rose at the fastest pace in seven years.
The hyper-competitive market is particularly difficult for first-time homebuyers, who are responsible for fewer and fewer purchases.
Of the four major US regions, only the Midwest – which has the most affordable homes – signed contracts since last month.