Pending home sales go up everywhere but West Coast

WASHINGTON (March 29, 2023)

– Pending home sales grew in February for the third consecutive month, according to the National Association of Realtors. Three U.S. regions posted monthly gains, while the West declined. All four regions saw year-overyear decreases in transactions.

The Pending Home Sales Index (PHSI)* — a forward-looking indicator of home sales based on contract signings — improved 0.8 percent to 83.2 in February. Year-over-year, pending transactions dropped by 21.1 percent. An index of 100 is equal to the level of contract activity in 2001.

“After nearly a year, the housing sector’s contraction is coming to an

Lawrence Yun. “Existing-home sales, pending contracts and new-home construction pending contracts have turned the corner and climbed for the past three months.”

The Northeast PHSI raised 6.5 percent from last month to 72.5, a drop of 17 percent from February 2022. The Midwest index improved 0.4 percent to 84.9 in February, a decline of 16.5 percent from one year ago.

The South PHSI grew 0.7 percent to 99.3 in February, dropping 21.7 percent from the prior year. The West index decreased 2.4 percent in February to 64.6, shrinking 28.4 percent from February 2022.

“The affordable U.S. regions – the Continued on Page 13