The Pending Home Sales Index, a forward-looking indicator based on signed contracts, increased 4.1 percent in March to its highest level since April 2010 when the federal homebuyer tax credit program was ending. The March increase was on top of an upwardly revised February 2012 PHSI of 97.4, and the PHSI is now 12.8 percent above the March 2011 level. In April 2010, the PHSI reached 111.3 as first-time buyers acted on the opportunity provided by the tax credit.
The National Association of Realtors (NAR) reported that over the past year the PHSI increased strongly in all regions, despite small March declines in the Northeast and Midwest of less than 1 percent. The year over year increases were 21.1 percent in the Northeast, 16.9 percent in the Midwest, 10.6 percent in the South and 9.0 percent in the West.
If contracts closed at the same time they were signed, this graph would be the correspondence between sales and the PHSI. So the PHSI is a good indicator of what is likely to happen with existing home sales which are the contract closings. We anticipate that April and May existing sales that will be reported on May 22, 2012 and June 21, 2012, will reflect the closing of contracts signed and driving today’s very robust PHSI.
Eye on Housing 
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[…] growth in housing demand. Perhaps most important is that the National Association of Realtors Pending Home Sales Index for March increased more than 4%, reaching its highest level since the end of the home buyer tax credit period. This level suggests […]
[…] Pending Home Sales Increase (eyeonhousing.wordpress.com) 41.473008 -72.818413 Share this:TwitterFacebookLike this:LikeBe the first to like this post. Posted in Condos, In The News, Property Management, Real Estate and tagged Alan Barberino, Alan Barberino Real Estate LLC Property Management Company in Connecticut CT, Common Interest Ownership, Condo Bylaws, Condos for rent in CT, Connecticut Condos For Sale, Connecticut Real Estate, CT Property Managers, Fannie Mae, Federal Housing Administration, Homes for sale in CT, Lawrence Yun, National Association of Realtor, PHSI, Property Management in CT, Property manager, Real estate, Search all homes for sale in CT, United States, Wallingford Connecticut […]
[…] Similarly, the April existing homes report from the National Association of Realtors (NAR) presented more good news. Existing single-family sales were up 9.9% from a year ago and 3% from March. Existing condominium and co-op sales were up 6% from March and more than 10% from a year ago. Inventories were up in March, but this is consistent with seasonal patterns. The median sales price was up significantly in March, more than 10%, but this is indicative of a change in the sales mix rather than a large jump in national house prices. This good news for April is consistent with the previous reading of pending home sales from NAR. […]
[…] Similarly, the April existing homes report from the National Association of Realtors (NAR) presented more good news. Existing single-family sales were up 9.9% from a year ago and 3% from March. Existing condominium and co-op sales were up 6% from March and more than 10% from a year ago. Inventories were up in March, but this is consistent with seasonal patterns. The median sales price was up significantly in March, more than 10%, but this is indicative of a change in the sales mix rather than a large jump in national house prices. This good news for April is consistent with the previous reading of pending home sales from NAR. […]