Pending home sales unexpectedly dip in April amid tight supply

• April Pending Home Sales: -4.4% M/M to 106.2 vs. +2.0% consensus and +1.7% in March (revised from +1.9%).
• On a Y/Y basis, contract signings rose 51.7%, as year-ago pandemic-related shutdowns pushed sales to an all-time low.
• The M/M contraction represents a tight supply of homes and a return to more normal levels of sales.
• The Midwest region was the only region to see a M/M gain.
• "Contract signings are approaching pre-pandemic levels after the big surge due to the lack of sufficient supply of affordable homes," said National Association of Realtors Chie Economist Lawrence Yun.
• He expects inventory to improve, on a whole, as soon as the autumn, as prospective sellers become more comfortable in listing. Also more homes may go on the market when the eviction moratorium and forbearance plans end.