US Pending Home Sales Increase 2.0% in February

On Thursday, the National Association of Realtors (NAR) released its Pending Home Sales Index (PHSI) for February. The PHSI—based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops—increased 2.0% to a reading of 72.0 in February. Year-over-year, pending sales were down 3.6%.

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

The Midwest and Southern regions posted gains, while the Northeast and West reported losses. Year-over-year, contract signings dropped in all four regions, with the Midwest undergoing the greatest reduction.

The regional breakdown is as follows:

• The Northeast PHSI declined 0.9% to a reading of 62.8 and was down 2.5% from February 2024.
• The Midwest PHSI increased 0.7% to a reading of 73.3 but was down 4.7% from the previous year.
• The South PHSI increased 6.2% to a reading of 86.0 and was down 3.4% from a year ago.
• The West PHSI declined 3.0% to a reading of 55.9 and was down 3.5% from February 2024.