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Pending Home Sales Take A Breather08-03-15 | News

Pending Home Sales Take A Breather
PHSI Drops Slightly In June

After reaching a near record in May, the PHSI fell a bit in June to 110.3. But the National Association of Realtors believes home sales still have considerable room for growth and improvement.

Pending home sales activity took a bit of a break in June, after recording five straight months of gains through most of the first half of 2015.

The Pending Home Sales Index (PHSI) dipped slightly for the month to 110.3, the National Association of Realtors said. This happened after the PHSI rose in May to 112.6, the highest it has been since April 2006, when it hit 113.7.

Even so, June's reading is the third highest of 2015, and is 8.2 percent above the 101.9 it reached in the same month a year earlier. Moreover, the PHSI has now increased for 10 consecutive months on a year-to-year basis.

PHSI data is based on sales contracts that have been signed but not yet closed. An index of 100 is equal to the average level of contract activity in 2001, the year the index was created.

Existing-home sales have increased considerably compared to a year ago, even though the share of first-time buyers has only modestly improved, Lawrence Yun, the NAR's chief economist, said.

The share of first-time buyers in 2015 has averaged 30 percent through June, according to the NAR. A year ago through June, the average share was 28 percent.

"Strong price appreciation and an improving economy are finally giving some homeowners the incentive and financial capability to sell and trade up or down," Yun said.

REGIONAL BREAKDOWN
• Northeast: Up 0.4 percent to 94.3 for the month; up 12.0 percent compared to June 2014.
• Midwest: Down 3.0 percent to 108.1 in June; up 5.0 percent year-to-year.
• South: Down 3.0 percent to 123.5 for the month; up 7.8 percent for the year.
• West: Up 0.5 percent to 104.4 in June; up 10.4 percent year-to-year.