US Pending Home Sales Decline for Second Consecutive Month in January

On Thursday, the National Association of Realtors released its Pending Homes Sales Index (PHSI) for January. The PHSI—based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops—declined 4.6% to a reading of 70.6 in January. Year-over-year, pending home sales were down 5.2%.

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

The regional breakdown is as follows:

• The Northeast PHSI increased 0.3% to a reading of 63.4 but was down 0.5% from January 2024.
• The Midwest PHSI fell 2.0% to a reading of 72.8 and was down 2.7% from a year earlier.
• The South PHSI dropped 9.2% to a reading of 81.0 and was down 8.8% from a year ago.
• The West PHSI declined 1.2% to a reading of 57.6 and was down 4.5% from January 2024.