Pending Home Sales

Pending Home Sales is an indicator used in the real estate market to measure the number of homes under contract for sale, but have not yet closed. It represents the number of sales agreements that have been signed by both the buyer and the seller, but the final closing of the sale is still pending.

The National Association of Realtors (NAR) publishes the Pending Home Sales Index (PHSI), which is used to gauge the strength of the existing home market and the potential for future home sales. The index is released on a monthly basis and is expressed as a percentage change on a baseline.

The Pending Home Sales index is considered an important indicator for predicting future trends in home sales. When a home goes under contract, there is typically a period of several weeks or months before the closing takes place. Therefore, the Pending Home Sales index can provide insight into future home sales activity.

The index can be influenced by a variety of factors. For example, factors such as economic growth, interest rates, unemployment rates, consumer confidence, and home prices can all affect housing demand and, consequently, impact the Pending Home Sales index.

The Pending Home Sales index is closely monitored by market participants, real estate professionals, and economic analysts. It is used to assess the overall health of the housing market and provide insights into future housing demand. It is also considered an important indicator for economic analysis and decision-making, such as assessing economic growth and making monetary policy decisions.

In summary, Pending Home Sales is an indicator in the real estate market that measures the number of homes under contract but have not yet closed. It provides insight into future home sales potential and is used to assess housing demand and market health. The index is closely followed by industry professionals and analysts for economic analysis and decision-making.