Pending home sales in the United States
- Previous was 0.0%
- The index is 76.5, compared to 78.9 previously
US housing data has been strong lately but this is a flop in forward indicators. There are signs that discount purchases are driving people towards new construction rather than existing homes. The report could also point to a shortage of inventory, as new listings are down 25% compared to last June.
The Pending Home Sales report measures the number of homes that have sold but not yet closed. Essentially, a contract has been signed but the deal is not yet complete. The National Association of Realtors (NAR) releases the Pending Home Sales Index (PHSI) each month which measures housing contract activity. Data is based on real estate contracts signed for existing single-family homes, condos, and co-ops. This is a forward-looking indicator because it represents transactions that will be closed in the coming months