NAR: PHSI Shows Market May Be Stabilizing
On June 1, the National Association of Realtors (NAR) released data related to the Pending Home Sales Index (PHSI) which is a forward-looking indicator based on pending home sales. The index based on contracts signed in April, stood at 101.4, down 3.2 percent from an upwardly revised March reading of 104.8, and is 10.2 percent lower than April 2006 when it registered 112.9. The revised March index was 10.0 percent below a year earlier.
Senioar NAR economist, Lawrence Yun, said the current index appears to be a fair representation of overall housing market conditions. “It looks like we may be leaving a period of market disruptions, and for the past two months the pending home sales index has been similar in year-ago comparisons, which means home sales might ease but should be fairly stable in the months ahead,” he said.
The PHSI by region:
- In the Midwest rose 2.3 percent in April to 98.1 but was 4.4 percent below a year ago.
- In the South increased 0.7 percent from March to 116.0, but was 10.4 percent below April 2006.
- In the West fell 10.2 percent in April to 91.4 and was 11.7 percent lower than a year ago.
- In the Northeast, the index dropped 10.4 percent from March to 89.3 and was 15.4 percent below April 2006.
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