Pending home sales in the US have decreased by 6.3% in April, reaching their lowest level since September 2022, according to the National Association of Realtors. This decline is attributed to high asking prices and borrowing costs, which are deterring potential buyers. The situation is further complicated by the fact that while more homeowners are listing their properties, buyers are waiting for more affordable financing options.

Key Factors Contributing to the Decline:

 *High Asking Prices:

 *Homes are still being listed at record levels, making them unaffordable for many buyers.

Elevated Mortgage Rates:

*Borrowing costs remain high, impacting the affordability of home purchases.

Economic Uncertainty:

*Concerns about potential tariffs, slowing economic growth, and layoffs are also influencing buyer decisions.

Regional Variations:

All four U.S. regions experienced month-over-month declines in pending home sales.

The West saw the largest drop in pending sales over the past two and a half years.

The Midwest saw a year-over-year increase in contract signings, while the Northeast and South saw declines.

Impact on the Market:

 *The decline in pending sales suggests a continued sluggish resale market until prices come down and mortgage rates stabilize.

Despite rising housing inventory, sales are not increasing due to the affordability challenges.

Lower mortgage rates are seen as crucial for bringing buyers back into the market