Pending Home Sales Index - PHSI


DEFINITION of 'Pending Home Sales Index - PHSI'

An index created by the National Association of Realtors (NAR) that tracks homes sales in which a contract is signed but the sale has not yet closed. The pending home sales index is a leading indicator of future existing home sales as it typically takes four to six weeks to close a sale after a contract has been signed.

BREAKING DOWN 'Pending Home Sales Index - PHSI'

Understanding demand for housing can help investors keep a finger on the pulse of the economy in general. To purchase a house, people have to be financially capable of maintaining the home and the mortgage payments. As housing demand increases, it can be inferred that people are either making more money, or feeling more confident in their ability to make mortgage payments.

  1. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. New Home Sales

    An economic indicator that measures sales of newly built homes. ...
  3. Economic Growth Rate

    A measure of economic growth from one period to another in percentage ...
  4. Index

    A statistical measure of change in an economy or a securities ...
  5. Economic Growth

    An increase in the capacity of an economy to produce goods and ...
  6. Existing Home Sales

    An economic indicator of both the number and prices of existing ...
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