After strong back to back showings for Pending Home Sales in May and June the forward-looking indicator declined in July but remained significantly above year-ago levels, according to the National Association of Realtors®. All regions joined the monthly decline except for the West, which continues to show the highest level of sales contract activity.
Pending home sales increased more than expected in June following a disappointing downturn in April and then a strong showing in May, according to the National Association of Realtors®. Activity in June increased in the West and South but declined in the Midwest and Northeast; however, all regions show robust double-digit gains from a year ago.
The Pending Home Sales Index a forward-looking indicator based on contract signings, rose 8.2 percent to 88.8 in May from an upwardly revised 82.1 in April and is 13.4 percent higher than the 78.3 reading in May 2010. The data reflects contracts but not closings, which normally occur with a lag time of one or two months.
This is the first time since April 2010 that contract activity was above year-ago levels, and the monthly gain was the strongest increase since last November when the index rose 10.6 percent.
Pending home sales , the data of which reflects contracts but not closings, and which normally occur with a lag time of one or two months, fell in April with regional variations following increases in February and March. According to the National Association of Realtors®, it was the combination unusual weather and economic softness adding to ongoing problems hobbling a housing recovery.
The Pending Home Sales Index (a forward-looking indicator the data of which reflects contracts but not closings which normally occur with a lag time of one or two months), rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent below 106.2 in March 2010; however, activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit.
FEBRUARY 2011
The Pending Home Sales Index, a forward-looking indicator, rose 2.1 percent to 90.8, based on contracts signed in February, from 88.9 in January. The index is 8.2 percent below 98.9 recorded in February 2010. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
The Pending Home Sales Index, a indicator of future home sales, declined 2.8 percent to 88.9 based on contracts signed in January. This is down from a revised 91.5 in December. The index is 1.5 percent below the 90.3 level in January 2010 when a tax credit stimulus was in place. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
The Pending Home Sales Index (PHSI), a forward-looking housing market indicator, increased 2.0 percent to 93.7 based on contracts signed in December from a downwardly revised 91.9 in November. The index is 4.2 percent below the 97.8 mark in December 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
The Pending Home Sales Index (PHSI) unexpectedly rose 3.5 percent to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. This recent increase still leaves the index 5.0 percent below 97.0 reading posted in November last year. Remember that this reflects contracts and not closings. The closings will normally occur with a lag time of one or two months.
The Pending Home Sales Index, a leading indicator, rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September. (The index is a forward looking indicator as data reflects contracts and not closings, which normally occur with a lag time of one or two months.) The index remains 20.5 percent below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6. NAR is quick to point out that the surge last October was due to first-time buyers motivated to make offers before the contract deadline of the first tax credit.
Although analysts were looking for a 3 percent rise, the Pending Home Sales Index (PHSI), a forward-looking indicator from the National Association of Realtors®, slipped 1.8 percent to 80.9 based on contracts signed in September from an upwardly revised 82.4 in August. However, the index remains 24.9 percent below a surge to 107.8 in September 2009 when first-time buyers were jumping into the market to take advantage of the initial deadline for the tax credit last November. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.