Pending Homes Sales Up 5.9% in July

The National Association of Realtors® (NAR) has reported that their Pending Homes Sales Index (PHSI), which 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, increased 5.9% in July to a reading of 122.1. Year-over-year contract signings rose 15.5%. An index of 100 is equal to the level of contract activity in 2001. This marks the third consecutive month of growth, with each of the four reporting regions experienced gains in both month-over-month and year-over-year.  In prepared remarks Lawrence Yun, NAR’s chief economist said, “We are witnessing a true V-shaped sales recovery as home buyers continue their strong return to the housing market. Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”