Pending Homes Sales Continued to Decline in October

The National Association of Realtors® (NAR) reported on Wednesday (11-30-22) that its Pending Homes Sales Index (PHSI)—which is based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops—declined 4.6% in October from September to a reading of 77.1. An index of 100 is equal to the level of contract activity in 2001. The PHSI has dropped for the fifth consecutive month and eleven out of the past twelve months. Year-over-year contract signings have declined 37.0%.

The NAR is reporting that in October three out of the four major regions suffered month-over-month decreases, and all four regions recorded year-over-year declines in transactions. The Northeast PHSI declined 4.3% from September to reading of 68.7, a drop of 29.5% from October 2021. The Midwest PHSI increased 3.3% to a reading of 83.5 in October but was down 32.1% from a year ago. The South PHSI fell 6.4% to a reading of 90.6, a decline of 38.2% from October 2021. The West PHSI slipped 11.3% to a reading of 55.6, down 46.2% from October 2021.