Pending Home Sales – June 2023 (Released July 27th, 2023

Here's how the Pending Home Sales Report typically works:
Data Collection: The NAR collects information from real estate agents and brokers across the country on the number of homes that went under contract during a specific month. These homes have accepted offers but have not yet completed the sales process.
Index Calculation: The data is used to calculate the Pending Home Sales Index (PHSI). The index is a seasonally adjusted value that serves as a leading indicator for future existing home sales. It compares the number of pending home sales in the current month to a baseline value based on the average level of contract activity in a specific base year (usually 2001).
Interpretation: The PHSI can be interpreted as follows:
PHSI value above 100: Indicates that contract activity is above the baseline, suggesting an increase in future home sales.
PHSI value below 100: Suggests that contract activity is below the baseline, indicating a potential decline in future home sales.
Release: The Pending Home Sales Report is usually released to the public on a specific day of the month, and it covers data from the previous month.
Importance:
The Pending Home Sales Report is closely watched by economists, real estate professionals, policymakers, and investors as it provides valuable insights into the housing market's health and can be a leading indicator of future economic trends. A strong reading in the report can indicate a robust housing market, which is often considered a positive sign for the overall economy. Conversely, a weak reading may signal potential challenges in the real estate sector and broader economic implications.
Keep in mind that the details of economic indicators can evolve over time, so it's always a good idea to refer to the latest information from official sources like the National Association of Realtors or other relevant authorities for the most up-to-date and accurate understanding of the Pending Home Sales Report.