The National Association of Realtors® (NAR) has reported their Pending Homes Sales Index (PHSI), which is based on signed real estate contracts, not actual closings, for existing single-family homes, condos, and co-ops, declined -10.6% in February, to a reading of 110.3. An index of 100 is equal to the level of contract activity in 2001. This marks the second straight month of declines in the PHSI. The NAR notes that contract transactions fell in four major U.S. regions. After eight consecutive months of gains, year-over-year contract signings declined -0.5% in February. The NAR notes that PHSI has fallen below 100 in Northeast and West regions in February. In a statement prepared for the release of the PHSI, Lawrence Yun, chief economist for the NAR said, “The demand for a home purchase is widespread, multiple offers are prevalent, and days-on-market are swift but contracts are not clicking due to record-low inventory. Only the upper-end market is experiencing more activity because of reasonable supply,” he continued. “Demand, interestingly, does not yet appear to be impacted by recent modest rises in mortgage rates.”
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Pending Home Sales Slip 10.6% in February