Pending home sales index (PHSI),
Definition of Pending home sales index (PHSI):
The PHSI is a leading indicator of future existing home sales. It typically takes four to eight weeks to close a home sale after signing the contract. 2001 was the first year data was analyzed for the PHSI.
An index published by the National Association of Realtors that measures ongoing activity in the real estate market. It is a leading indicator that predicts the number of sales that will close over a given month. The base line for normal activity is 100 as measured in the year 2001 when the index was first created. The index is calculated on both a regional and national basis.
The Pending Home Sales Index (PHSI) is an index created by the National Association of REALTORS® (NAR) which tracks homes sales where a contract is signed, but the transaction has not yet closed.
How to use Pending home sales index (PHSI) in a sentence?
- The PHSI is more relevant than the monthly existing home sales, which documents the number of home sales by looking at mortgage closings.
- The PHSI shows the number of sales in which a contract has been signed, but the transaction hasn't yet closed; the closing process can take up to two months.
- The Pending Home Sales Index (PHSI) is a monthly housing market index released by the National Association of Realtors.
- The index is seen as a leading economic indicator of future existing home sales and is watched by stock market participants for clues about the health of the economy.
Meaning of Pending home sales index (PHSI) & Pending home sales index (PHSI) Definition