Pending Home Sales Index in United States

It is a leading indicator of housing activity, d ince measured based 100 (2001), contracts signed but not yet executed in owned homes. It has better correlation with the real estate activity indicators such as housing starts or sale of new homes.

It is based on a base 100 index in 2001, a year of particularly high activity. Therefore, a level 100 coincides with a level of sales particularly high.

It is a leading indicator of sales of previously owned homes, since most are closed in one or two months after signing the contract.

Not all pending home sales are finally close (fallouts). If there are variations in the ratio, the index can be altered, requiring review by the NAR.