US pending home sales fell -1.3% in April compared with expectations of a +0.6% gain for the month. The March data was revised down slightly to show a decline of -0.9% and there was a -3.3% annual decline in sales. This was the first annual decline since December and the sharpest annual decline since June 2014. According to National Association of Realtors (NAR) chief economist Yun, contract activity is fading this spring because significantly weaker supply levels are undermining affordability conditions. Yun was also pessimistic that supply levels would increase in the short term which would continue to hamper sales growth. The results reinforce concerns surrounding a slowdown in the housing sector, although the situation is complicated by the fact that sales are being undermined by supply issues rather than weakness in demand. Some in the industry are hoping the potential for higher home prices will increase the number of properties on the market over the next few months, in turn helping to rebalance the market.