Home sales down in April

After two steady months of gaining ground in the market, the pending home sales index fell 11.6 percent in April, according to the National Association of Realtors.

Experts believe that the presence of unusual weather and a struggling economy may have potential buyers waiting on the sidelines. People may be apprehensive towards relocating to a new home while tornadoes continue to tear up the middle of the country.

"The pullback in contract signings is disappointing and implies a slower than expected market recovery in upcoming months," Lawrence Yun, NAR chief economist said. "The economy hit a soft patch in April from sharply rising oil prices, widespread severe weather with the heaviest precipitation in 20 years, and a sudden rise in unemployment claims."

Experts believe that the tightened credit and mortgage markets are contributing to the slowed sales as well. The federal government is also reducing the size of mortgages it guarantees in high-priced markets, according to the Boston Herald. The maximum loan amount that government financial institutions will back in the Greater Boston area is going to drop from $729,750 to $465,750.  

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