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.

RELATED TERMS
  1. National Association of Realtors ...

    A national organization of real estate brokers. The National ...
  2. Existing Home Sales

    An economic indicator of both the number and prices of existing ...
  3. Realtor Property Resource (RPR)

    A National Association of Realtors member benefit providing realtors ...
  4. Home Debtor

    An individual who holds a large mortgage with little or no equity ...
  5. Home Mortgage

    A home mortgage is a loan given by a bank, mortgage company or ...
  6. Energy Improvement Mortgage

    A mortgage that sets money aside for home improvements that will ...
Related Articles
  1. Investing

    8 Signs Of A Real Estate Rebound

    Wondering when prices will start to turn around in your area? We'll show you how to get in the know.
  2. Investing

    6 Signs Of A Healthy Real Estate Market

    When these indicators align, it is a good bet that a real estate recovery is on the way.
  3. Managing Wealth

    Top U.S. Housing Market Indicators

    A quick overview of the top economic indicators to track the housing market in the U.S.
  4. Personal Finance

    8 Signs Your Neighborhood Is On The Upswing

    If you were hard-hit by the real estate crash, you may be wondering when things will get better for you. We show you how to keep tabs.
  5. Managing Wealth

    Buying a House Before Selling Your Own: Risks and Considerations

    Learn more about the financial risks and worst case scenarios associated with buying a home before selling your current residence.
  6. Investing

    Purchasing a Home Without a Realtor: What You Need to Know

    When purchasing a home, you can save money by performing the realtor work yourself, but it will take time and effort.
  7. Investing

    How to Price Your Home Like the Pros

    Selling a house without using a realtor can be a difficult task. Thankfully the internet has made it easy to list a home like the pros do.
  8. Investing

    How To Afford A Second Home

    Saving enough to buy a vacation home involves some unique considerations including a big down payment and more lending hurdles.
  9. Investing

    House Prices Up? How to Find a Home

    With housing affordability slipping in many areas across the nation, first-time buyers are struggling to find a home that fits their budget. What to do?
  10. Investing

    5 Real Estate Fears That Keep You From Buying

    Don't let these concerns stop you from owning your own home. Learn how to overcome common home-buying fears and feel confident in signing your mortgage.
Trading Center