Pending Home Sales Index

Yahoo  Apr 27  Comment 
Contracts to buy previously owned U.S. homes increased more than expected in March to reach their highest level in nearly a year, suggesting sustained momentum in the housing market. The National Association of Realtors said on Wednesday its...  Mar 28  Comment 
WASHINGTON (dpa-AFX) - Partly reflecting strong growth in the Midwest, the National Association of Realtors released a report on Monday showing a bigger than expected increase in U.S. pending home sales in the month of February. NAR said its...  Feb 29  Comment 
WASHINGTON (dpa-AFX) - Pending home sales in the U.S. unexpectedly saw a notable decrease in the month of January, the National Association of Realtors revealed in a report on Monday. NAR said its pending home sales index slumped 2.5 percent to...
Wall Street Journal  Jan 28  Comment 
The number of existing homes that went under contract in the U.S. was little changed in December, although the National Association of Realtors warned of subdued demand in coming months amid global financial volatility and tight inventory.  Dec 30  Comment 
WASHINGTON (dpa-AFX) - An indicator of future home sales unexpectedly declined in November, indicating the third decline in the last four months. The National Association of Realtors' pending home sales index fell 0.9 percent in November....
New York Times  Nov 30  Comment 
The National Association of Realtors said that its seasonally adjusted pending home sales index rose 0.2 percent, to 107.7, in October.
Wall Street Journal  Oct 29  Comment 
The number of previously owned homes that went under contract across the U.S. fell last month, a sign of choppiness in the housing market.  Sep 28  Comment 
WASHINGTON (dpa-AFX) - A measure of strength in the housing market unexpectedly declined for August, raising concerns that home sales figures might be poised for a decline in the near future. The National Association of Realtors revealed that its...
Wall Street Journal  Sep 28  Comment 
A forward-looking gauge of U.S. home sales slipped 1.4% in August—further evidence that the surge in momentum in the first half of the year has leveled off.
Wall Street Journal  Aug 27  Comment 
The National Association of Realtors said its pending home sales index rose 0.5% in July from the previous month.


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The Pending Home Sales Index (PHSI) is released by the National Association of Realtors to measure housing contract activity. Released during the first week of each month, the index is based on signed real estate contracts for existing single-family homes, condos and co-ops. A pending sale is not counted as a sale until the transaction is closed. Hence, one must understand that pending home sales index is a leading indicator for existing home sales, not new home sales. It only helps to predict actual home sales activity as pending home sales generally become existing home sales one to two months later.[1]

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Both pending home sales and existing home sales dipped because of the credit crunch in 2007.[2]

Why is it important?

The index not only provides a gauge for housing demand, but also economic strength. Increase in the index shows that people are in good financial positions to purchase new homes. Furthermore, this index has a powerful multiplier effect through the economy. The multiplier effect can be seen from the realtor's point of view and also from the home buyer's point of view. Each time a home is resold, it will generate income for the realtors. Increase in income will lead to more consumption opportunities. As for the home buyers, consumer spending will also increase since they will have to purchase furniture and electrical appliances to furnish the new home. Trends in the pending sales data also has direct influence on stocks of home builders, mortgage lenders, and home furnishing companies.[3]


  1. National Association of Realtor: Pending Home Sales Index (PHSI)
  2. The big picture: Pending home sales index falls 6.8%
  3. Econoday: 2010 Economic Calendar
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