The NAR Pending Home Sales Index increased for the fourth straight month in April to a level 14% above April of 2014.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts produced by the National Association of Realtors (NAR), increased 3.4% in April to 112.4, up from an upwardly revised 108.7 in March. The PHSI increased year-over-year for the eighth consecutive month and reached its highest level since May 2006.
Regionally, the April PHSI increased 2.3% in the South and 0.1% in the West. The index rebounded in the Northeast by 10.1% after declines in prior months. The PHSI was up 5% in April for the Midwest.
The recent months’ positive news from NAR’s PHSI bodes well for future existing home sales, which in turn should spur additional newly-built home sales in the months ahead.