The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts, increased a slight 0.4% in April to 97.8 from a March level of 97.4. The PHSI monthly increase reported by the National Association of Realtors was the second since June of 2013. However, it is important to note that the April reading was down 9.2% on a year-over-year basis.
The April PHSI increased in the Northeast by 0.6% and 5% in the Midwest but fell 0.6% in the South and 2.9% in the West. Year-over-year, all of the regions remain down, ranging from decreases of 15% in the West and 12% in the Northeast to 6.9% in the Midwest and 6.4% in the South.
The 0.4% increase in pending home sales in April contrasts with the 6.4% increase in new home sales for the same month. New home sales are down 4.2% on a year-over-year basis.