Pending Home Sales Mount Record Comeback The National Association of Realtors

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Pending Home Sales Mount Record Comeback

This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers.

By The National Association of Realtors ®

Pending home sales mounted a record comeback in May, seeing encouraging contract activity after two previous months of declines brought on by the coronavirus pandemic, according to the National Association of Realtors ® . Every major region recorded an increase in month-overmonth pending home sales transactions, while the South also experienced a year-over-year increase in pending transactions. The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 44.3 percent to 99.6 in May, chronicling the highest month-overmonth gain in the index since NAR started this series in January 2001. Year-over-year, contract signings fell 5.1 percent. An index of 100 is equal to the level of contract activity in 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population. “This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” said Lawrence Yun, NAR’s chief economist. “This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.” “More listings are continuously appearing as the economy reopens, helping with (continued on page 38)

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