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Contract Activity Suggests Uptick in Spring Home Sales

Contract Activity Suggests Uptick in Spring Home Sales

Pending home sales surged last month, far exceeding analysts’ expectations. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) rose 8.3 percent compared to November. December’s PHSI reading of 77.3 was 1.3 percent higher than a year earlier. The PHSI is based on the number of contracts to purchase single-family homes, townhomes, condominiums, and cooperative apartments. It is viewed as a leading indicator of home sales over the ensuing few months. NAR will publish its report on January’s existing home sales on February 22. Analysts polled by Econoday had forecast an increase in the PHSI of 1.3 percent.  Perhaps because the PHSI posted no change from October to November, the estimates were unusually broad, ranging from an increase of 0.7 percent to 3
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