Pending Home Sales Drop Slightly
The National Association of Realtors (NAR) reported that its Pending Home Sales Index (PHSI) dipped by one percent in February to 101.9, down from 102.9 in January. On a year-over-year basis, the PHSI was down by 4.9 percent, making the 14th straight month of annual declines.
On a regional basis, the PHSI in the Northeast dipped by 0.8 percent to 92.1 in February while the index in the Midwest saw a 7.2 percent tumble to 93.2. However, pending home sales in the South rose by 1.7 percent to an index of 121.8 and the index in the West inched up by 0.5 percent to 87.5.
“In January, pending contracts were up close to five percent, so this month’s one percent drop is not a significant concern,” said NAR Chief Economist Lawrence Yun. “As a whole, these numbers indicate that a cyclical low in sales is in the past but activity is not matching the frenzied pace of last spring.”