Americans retreated from signing contracts to buy homes in April for the second straight month, which The Associated Press reports is a possible sign that a declining number of homes on the market are stifling sales during the traditional spring buying season.
The National Association of Realtors says its pending home sales index fell 1.3% in April to 109.8, after slipping 0.9% in March to 111.3. The index has fallen 3.3% over the past 12 months.
Potential buyers are crowding open houses in many neighborhoods because there are fewer homes on the market. But rising home values have not led more people to put their houses on the market, contrary to the expectations of many economists that greater demand would lead to increased supply. The number of properties for sale has plunged 9% over the past year to 1.93 million, according a separate report from NAR.
Pending sales contracts are a barometer of future purchases. A sale is typically completed a month or two after a contract is signed.
Signed contracts in April fell in the Midwest and South, stayed unchanged in the West and increased in the Northeast.
