The Pending Home Sales Index decreased in August, but has increased year-over-year for 12 consecutive months. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), decreased 1.4% in August, but is up 6.1% from the same month a year ago.
While increasing in the West, the PHSI declined in the other three regions. Year-over-year, the PHSI was up in all four regions, ranging from 8.9% in the Northeast to 4.1% in the South.
The PHSI declined slightly the past two months, and existing sales were down in August. NAR suggested that new construction was providing no relief for the tight housing inventory, which in turn hurt sales. However, strong new home sales reported last week coupled with a ten-year high in builder confidence suggest continued good news for the existing sales market and for builders in 2015.