Pending Home Sales Fall 20.8% in March

The National Association of Realtors® (NAR) has reported Pending Homes Sales Index (PHSI) fell -20.8% to a reading of 88.2 in March. Year-over-Year contract signings declined -16.3%. The PHSI is a leading indicator of housing activity and is based on signed real estate contracts, not actual closings, for existing single-family homes, condos, and co-ops. In prepared remarks Lawrence Yun, NAR’s chief economist said, “The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listings and new contracts. As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listings and buying activity will resume, especially given the record low mortgage rates.” Nevertheless, Yun is projecting homes sales will decline -14% for the year.