Pending Home Sales Index - PHSI
Categories: Real Estate
"Whoa, that home sale price is bonkers...I can’t believe it sold for that much."
NAR, the National Association of Realtors, created the Pending Home Sales Index (PSHI), which tracks home sales that are in the works, but not yet closed.
If you bought a house, you know what this means. If you haven’t, you should know that buying a house takes roughly forever. As in: a month or two after signing the contract that says you officially bought it. All those houses that have been sold, but not closed, are in the PSHI.
Since the PSHI is tracking a large number of pending home sales, it’s akin to a live stream of house sales. If you’re looking for a leading economic indicator for home prices, the PSHI is one of many. There’s the House Price Index (HPI) which looks particularly at single-family house prices...another popular one. Compared to the HPI, the PHSI is more widespread, representing a good measure for house prices in the near future. Savvy realtors will use this info to help their clients get a good deal and set expectations.
You know how it goes: set expectations very, very low, and you’ll walk away with a happy customer. Something like that.
