Pending Home Sales

Every month the National Association of Realtors publishes their Pending Home Sales Report. The data is generally considered a leading indicator of sales activity in the real estate market since it measures housing contract activity. These contracts are signed before the actual sale takes place; thus it signifies the activity that is expected in the future. The number of pending home sales is provided on both a seasonally adjusted annual rate as well as a non-seasonally adjusted rate. It is important to note that these are index levels, and not the actual number of contracts that have been recorded. Instead, it is a measure of the monthly relationship between sales contracts and the historical transactions that have actually closed.

Figure 1
Pending Home Sales

2007 – 2009, February 2010 – July 2010
Sales in Thousands

Pending Home Sales

Source: National Association of Realtors.

Figure 2
Pending Home Sales Percent Change Month-Over Month

February 2010 – July 2010

Pending Home Sales Percent Change

Source: National Association of Realtors.

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