This week the
National Association of Realtors released its June “Pending Home Sales” report which showed that nationally, pending home sales had edged up 0.4%.
The National Association of Realtors developed the “Pending Home Sales” index as a leading indicator based on a random sampling of roughly 20% of the month’s transactions for exiting home sales and indexed to the average level of contract activity set during 2001.
In an effort to use any “positive” numbers as a means of appealing to buyers, David Lereah, NAR’s Chief Economist states, “A quieting in the movement of indicators should restore confidence to home buyers who’ve been on the sidelines, waiting for the right time to get into the market, and now is the best time we’ve seen since the 1990s in terms of housing choices and flexible terms.”
As usual, looking more closely at the results one might draw a less optimistic conclusion:
- Nationally the index was down 9.6% as compared to June 2005
- The Northeast region was down 6.3% in June and down 11.6% as compared to June 2005. Currently, this region has dropped below the average activity of 2001 for which the PHSI is based.
- The West region was unchanged in June and down 14.2% as compared to June 2005.
- The Midwest region was up 1.9% in June but down 11.9% as compared to June 2005.
- The South region was up 2.5% in June but down 4.8% as compared to June 2005.
So it appears that, year over year, contract activity is dropping rather sharply with all regions, particularly the West, Midwest and the Northeast, showing significant declines.
So much for a “quieting” of movement of this indicator.
This week the National Association of Realtors released its June “Pending Home Sales” report which showed that nationally, pending home sales had edged up 0.4%. 
