U.S. Pending Homes Sales Declined in 3 out of 4 Regions in May

On Thursday (6-29-23), The National Association of Realtors® (NAR) reported their 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, fell 2.7% in May from April, to a reading of 76.5. An index of 100 is equal to the level of contract activity in 2001. Year-over-year (May 22 – May 23) contract signing fell 22.2%.

The NAR is reporting that in May, three out of four regions registered month-over-month declines. Year-over-year all four regions posted declines. In May, the Northeast PHSI rose 12.9% from April to a reading of 66.7, however, it was 21.9% below May 2022 reported level. The Midwest index fell 5.3% to a reading 74.4 in May and was down 23.5% year-over-year. The West index dropped 6.1% to a reading of 58.4 in May and was 26.6% lower than in May 2022. The South PHSI slid 4.4% lower in May to a reading of 99.4 and was down 19.6% year-over-year.