Pulse of Existing Home Sales Reaches 10-Month High

Sold_Sale_Pending_SignThe busiest home-buying season of the year is living up to its reputation. Last month, Americans were signing contracts to purchase existing homes at a level that even surprised many economists.

Thanks in large part to interest rates that have remained relatively low, the Pending Home Sales Index (PHSI) increased in March to a level of 110.5, the highest since last May.

PHSI is a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR). An index of “100” is considered an average level of contract activity.

Three of the four regions of the U.S. saw an increase in pending sales: the Northeast notched the biggest increase of 3.2%, followed by the South (3%) and the Midwest (0.2%). The West region experienced a 1.8% drop, which NAR attributes to the rapid increase in median home prices – up 38% within the last three years.

Additional insights are available on EyeOnHousing.org.

 

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