The Pending Home Sales Index is based on contracts which were signed throughout the month of June showed a 5% increase from the downwardly revised index from May which was at 97.5. This number is still 8.6% below 2006 when it was at 112. The gain of 5% is the largest increase in more than three years. The last large jump was recorded in March of 2004.
A senior economist with the NAR, Lawrence Yun, states that it is encouraging to see that an increase is shown in all 4 major regions of the U.S. He notes that it is still too soon to firmly state that home sales have passed the bottom-out point.
The index is based on pending sales of existing homes and is a leading indicator for the housing sector. The sale of a home is listed as pending upon the singing of a contract and prior to the close of escrow.
Here is what the Pending Home Sales Index showed across the U.S.:
WEST: The index increased 8.6% in June to 103.6, yet it was still 5.5% below 2006.
NORTHEAST: The PHSI increased 3.1% from May to 96, which stands 2.4% below June of 2006.
SOUTH: The index increased 4.7% in June up to 111.6; however it was 12.7% below 2006.
MIDWEST: The PHSI rose 3.5% throughout June to 92.5, which in 8.2% below June 2006.
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