Pending Home Sales Slow Slightly In April

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 a number of 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 major 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 what future home sales will look like. According to their most recent report, pending sales fell 1.3 percent in April, with most regions flat from the month before. The slight decline was mostly due to a drop in the Midwest. Still, the 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. More here.

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