Pending Home Sales Index - PHSI

A A A

DEFINITION

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.

INVESTOPEDIA EXPLAINS

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.


RELATED TERMS
  1. Economic Growth Rate

    A measure of economic growth from one period to another in percentage terms. ...
  2. Economic Growth

    An increase in the capacity of an economy to produce goods and services, compared ...
  3. Existing Home Sales

    An economic indicator of both the number and prices of existing single-family ...
  4. New Home Sales

    An economic indicator that measures sales of newly built homes. Released by ...
  5. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that is used by investors ...
  6. Economic Cycle

    The natural fluctuation of the economy between periods of expansion (growth) ...
  7. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a ...
  8. Index

    A statistical measure of change in an economy or a securities market. In the ...
  9. Forbearance

    A temporary postponement of mortgage payments.
  10. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes the monthly loan ...
Related Articles
  1. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

  2. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  3. Introduction To Stationary And Non-Stationary ...
    Active Trading

    Introduction To Stationary And Non-Stationary ...

  4. What is GDP and why is it so important?
    Investing

    What is GDP and why is it so important?

  5. Economic Indicators To Know
    Retirement

    Economic Indicators To Know

  6. Forecasting Mortgage Rates: Buy, Sell ...
    Investing Basics

    Forecasting Mortgage Rates: Buy, Sell ...

  7. What counts as
    Credit & Loans

    What counts as "debts" and "income" ...

  8. How does my debt-to-income (DTI) ratio ...
    Home & Auto

    How does my debt-to-income (DTI) ratio ...

  9. Financing Options For Buyers Of Foreclosed ...
    Credit & Loans

    Financing Options For Buyers Of Foreclosed ...

  10. What are the best ways to invest in ...
    Investing Basics

    What are the best ways to invest in ...

comments powered by Disqus
Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center