US Pending Home Sales Decline 5.5% in July

On Thursday, the National Association of Realtors® (NAR) released its Pending Homes Sales Index (PHSI) for July. The PHSI—based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops—declined 5.5% to a reading of 70.2 in July. NAR notes that this is lowest reading since tracking began in 2001. Year-over-year, pending homes sales were down 8.5%.

An index of 100 is equal to the level of contract activity in 2001.

All four regions reported month-over-month declines in July, and three out of four regions posted year-over-year losses.

• The Northeast PHSI declined 1.4% to a reading of 64.6 in July but was 2.4% above July 2023.
• The Midwest PHSI sank 7.8% to a reading of 67.8 in July and was down 11.4% year-over-year.
• The South PHSI fell 6.5% to a reading of 83.5 in July and was 11.5% below July 2023.
• The West PHSI dipped 3.8% to a reading of 56.2 in July and was down 6.0% year-over-year.