US Pending Homes Sales Increase in 2 Out of 4 Regions in July

On Thursday (8-30-23), the National Association of Realtors® (NAR) reported that its 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—increased 0.9% month-over-month in July to a reading of 77.6. An index of 100 is equal to the level of contract activity in 2001. Year-over-year, contract signing declined 14.0%.

NAR reported that two out of four regions registered a month-over-month increase in July. Year-over-year, all four regions posted declines.

• The Northeast PHSI fell 5.8% from June to a reading of 63.2 and was 20.2% below July 2022.
• The Midwest index inched 0.4% lower to a reading 77.5 in July and was down 16.0% year-over-year.
• The South PHSI increased 2.0% to a reading of 95.3 in July but was down 10.9% from a year ago.
• The West index posted a 6.2% increase to a reading of 61.3 in July but was 12.8% lower than in July 2022.