PHSI: Pending home sales up for fifth straight month

The National Association of Realtors® reported this morning that pending home sales are up for the fifth straight month.

The Pending Home Sales Index (PHSI) rose 3.6 percent in June, putting it 6.7 percent above June 2008 levels. According to NAR, the PHSI is:

"...released during the first week of each month. It is designed to be a leading indicator of housing activity.

"The index measures housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos and co-ops. A signed contract is not counted as a sale until the transaction closes. Modeling for the PHSI looks at the monthly relationship between existing-home sale contract and transaction closings over the last four years."
-Realtor.org, Pending Home Sales Index

The PHSI has not had five consecutive months of gains since July 2003. The PHSI increase is the latest in a recent list of positive news for the real estate industry, including:

• Home prices increase in May
• New-home sales increase at fastest rate in eight years
• Existing-home sales increase, housing inventory declines

Check back to Delta Media Group's Real Estate News blog for more updates on the housing market.