The pending home sales index is a leading indicator of existing home sales (resales). The National Association of Realtors (NASR) developed the index.

Pending home sales are those in which a contract was signed, but not yet closed. It usually takes four to six weeks to close a contracted sale


Pending home sales fell a steep 2.2 percent in the month which points to unwelcome weakness for final sales of existing homes especially in January and also February. Final sales in December, reported last week, dropped a very sharp 6.4 percent to a 4.990 million annualized rate that was the lowest in more than three years. The pending sales index can be volatile but the direction of today's indication is unmistakable.



In December, existing home sales fell 6.4% to a seasonally adjusted rate of 4.99 million in December. Economists expected a 1.3% decline.

I commented Existing Home Sales Plunge 6.4%, Down 10.3% Y-O-Y, Worst Reading in Over 3 Years.

The pending index suggests more weakness, but we have to wait for the data. If accurate, expect another 2.2% decline on top of the chart shown.

The Existing-Home Sales data release for January 2019 is scheduled for Thursday, February 21, 2019.

The Jobs report due Friday, February 1, will be on schedule.

Mike "Mish" Shedlock

Pending Home Sales Unexpectedly Dive: NAR Blames Tight Supply

Fresh on the heels of a glowing existing homes sales report comes news of an unexpected plunge in pending home sales. Economists in the Econoday survey expected a 1.1% increase. Instead, the pending home sales index plunged 2.8%.

Warmest February in Decades Spikes Pending Home Sales

Economists are crowing over a huge and unexpected spike in pending home sales. The Econoday consensus estimate was a rebound of 2.4% following the 2.8% decline in January. Instead, the index spiked 5.5%.

Pending Home Sales Flat, Stuck at Two-Year Lows: Visible Hurricane Impacts

Pending home sales for September, an advance indicator of existing home sales was flat for the month. Economists expected a gain.

NAR Blames Inventory, Weather as Pending Home Sales Tumble 3% Year-Over-Year

Pending home sales "inched" forward monthly but the year-over-year numbers show a sizable decline.

GDP Estimates Plunge on Retail Sales Data

In the wake of unexpectedly grim retail sales data, Fourth-Quarter GDP estimates have plunged.

Pending Home Sales Unexpectedly Dive to Lowest Level in 3.5 Years

Those who thought weakness in home sales was a temporary soft patch appear to have things wrong.

Pending Home Sales Down Again: NAR Blames “Staggering Lack of Inventory”

The pending home sales index for July dropped 0.8 percent vs an Econoday expected gain of 0.4%.

More Trapped Homeowners: Pending Home Sales Decline Again, Index Below 2016 Level

The pending home sales index, an estimate of existing home sales, has accurately provided the direction of the monthly home resale reports.

Spring Existing Home Sales: Big Flop

The pending home sales report, a strong indicator of existing home sales, suggests another bad month is on the way.