Although the number of pending home sales increased in April, NAR Chief Economist Dr. Lawrence Yun warned that deepening supply shortages risked home price growth outpacing wage growth, potentially hurting that growth.
The number of pending home sales increased in April, but Dr. Lawrence Yun, chief economist for the National Association of Realtors, warned that the increase could be undermined by a deepening supply shortage.
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Lawrence Yun, Inman on Tour Nashville | Lawrence Yun Credit: AJ Canaria Creative Services
The number of existing home sales increased 1.4% from the previous month and 3.2% from a year earlier in April, according to the Pending Home Sales Report released Tuesday by the National Association of Realtors (NAR).
“Unless supply increases significantly, home price growth could outpace wage growth and homeownership rates could decline further,” Yun said. “We need to focus all efforts on promoting housing supply.”
Yun noted that historically low foreclosure sales have limited discount inventory, with most markets selling above last year’s prices.
Despite the headwinds, buyers are still moving. “Despite heightened economic uncertainty and a slight increase in mortgage rates, buyers are cautiously optimistic,” Yun said, adding that demand would further increase once interest rates recede to early 2026 levels.
Regional breakdown
Compared to the previous month, sales increased in the Northeast (up 6.6%), Midwest (up 3.0%), and West (up 0.4%). Despite recording the largest year-on-year increase of 4.7% among all regions, the South was the only region with a month-on-month decrease, decreasing by 0.7%. Compared to the previous year, the Northeast region was the only region in the red, decreasing by 0.6%.
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Of the 50 metro areas included in the report, Boston, Cambridge and Newton recorded year-over-year pending sales growth of 10.3%, followed by Miami, Fort Lauderdale and West Palm Beach at 9.4% and Oklahoma City at 8.6%, according to economic data from Realtor.com.
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