Another U.S. Housing Market Indicator Pointing to a TurnaroundHousing-Market / US Housing Apr 27, 2012 - 01:55 AM GMT
The Pending Home Sales Index (PHSI) of the National Association of Realtors increased 4.1% to 101.4 in March, the highest since April 2010. The PHSI reflects contracts not actual closings of sales of existing homes and typically lead actual sales by 1-2 months.
The PHSI advanced two months has a strong positive correlation with actual sales of existing homes. Sales of existing homes declined 2.6% in March but advanced 20% in the first quarter. The March jump of the PHSI points to possibly further gains in sales of existing homes in the April-May period.
Asha Bangalore — Senior Vice President and Economist
Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.
Copyright © 2012 Asha Bangalore
The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.
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