August 3, 2007

Pending Homes Sales have biggest gain in 3 years

The National Association of Realtors (NAR) just released that the Pending* Home Sales Index (PHSI) was 5 percent higher from the revised May index of 97.5, but is still 8.6 percent below June 2006 when it stood at 112. This is based on contracts signed in June.
The 5 percent monthly gain is the largest in more than three years, since a 6.1 percent increase was recorded in March 2004.
The increase occured in all four major regions of the US:
  • West: the PHSI increased 8.6 percent in June to 103.6, but was 5.5 percent below a year ago.
  • Northeast: the index rose 3.1 percent from May to 96, which is 2.4 percent lower than June 2006.
  • South: the index increased 4.7 percent in June to 111.6, but was 12.7 percent below a year ago.
  • Midwest: the PHSI rose 3.5 percent in June to 92.5, which is 8.2 percent lower than June 2006.
* A sale is listed as pending when a contract has been signed but the transaction has not closed yet.