The rate of pending home sales in the United States fell on both a monthly and annual basis in April, according to the National Association of Realtors. The organization says that while demand has remained strong for more affordable listings, there has been a slowdown in more expensive sales.

The Pending Home Sales Index for the month stood at 104.3, down 1.5 percent from March. This also marked a year-over-year drop of 2 percent, the 16th straight month of annual decreases.

The index measures transactions where a contract has been signed but not yet finalized. Since the sale usually closes within a couple of months, the Pending Home Sales Index serves as a forward-looking indicator of home sales. A figure of 100 is equal to sales activity in the year 2001, which had an existing home sales volume in the 5 million to 5.5 million range; this is considered normal for the current U.S. population.

"Home appreciation has been the strongest on the lower-end as inventory conditions have been consistently tight on prices priced under $250,000," said Lawrence Yun, chief economist at the National Association of Realtors. "Price conditions are soft on the upper end, especially in high tax states like Connecticut, New York, and Illinois."

Yun said the number of homes for sale has increased in pricier markets, especially West Coast cities. He said this likely reflects a migration of people to more affordable markets.

Yun also remained optimistic that sales will pick up due to a dip in mortgage rates. According to Freddie Mac, the average rate for a 30-year fixed rate mortgage at the end of April was 4.2 percent – down from 4.58 percent at the end of April 2018 and a recent peak of 4.94 percent in mid-November.

"Though the latest monthly figure shows a mild decline in contract signings, mortgage applications and consumer confidence have been steadily rising," said Yun. "It's inevitable for sales to turn higher in a few months."

The Midwest was the only region with some growth in pending sales. The index there stood at 96.8 in April, up 1.3 percent from the previous month but a year-over-year decline of 2.4 percent.

In the Northeast, the Pending Home Sales Index fell 1.8 percent to 88.9 percent. This was down 2.1 percent from April 2018.

The index dropped 2.5 percent from March and 1.8 percent from April to 124 in the South. It fell 1.8 percent from the previous month and 1.5 percent from the previous year to 93.5 in the West.