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.

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RELATED FAQS
  1. What economic indicators should an investor in the real estate sector consider?

    Find out about economic indicators and which indicators investors in the real estate sector should take into account before ... Read Answer >>
  2. Is there a capital gains tax on the sale of our home if we use the profit towards ...

    Since my job reduced my hours and uncertainty of income, we might have to sell our home. We would like to put the profit ... Read Answer >>
  3. Will I pay capital gains tax on the profits from the sale of my home?

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  6. What components are factored in determining net sales?

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