Pending Homes Sales Increase for Third Consecutive Month in February

Posted on March 29, 2023

On Wednesday (3-29-23), the National Association of Realtors® (NAR) reported its Pending Homes Sales Index (PHSI)—based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops—improved 0.8% month-over-month in February to a reading of 83.2. An index of 100 is equal to the level of contract activity in 2001. However, contract signing declined 21.1% year-over-year. The PHSI has now increased for three consecutive months.

NAR is reporting that three out of four regions posted gains in February:

  • The Northeast PHSI increased 6.5% to reading of 72.5 but declined 17.0% from February 2022.
  • The Midwest PHSI inched 0.4% higher to reading of 84.9 but was down 16.5% year-over-year.
  • The South PHSI posted an increase of 0.7% to a reading of 99.3 but was down 21.7% from February 2022.
  • The West PHSI declined 2.4% to a reading of 64.6 and was down 28.4% year-over-year.
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