Pending Home Sales Down to Lowest Level Since 2011

The National Association of Realtors (NAR) reported yet another monthly decline in its measure of pending home sales, indicating continued softness in future sales figures.

According to the latest monthly report, the group’s Pending Home Sales Index (PHSI)—a metric based on contract signings—dipped 0.8 percent in February to a reading of 93.9, its lowest point since October 2011. It was the eighth decline in as many months.

Year-over-year, the index was down 10.5 percent, NAR reported.

Despite the ongoing decline in sales activity, NAR chief economist Lawrence Yun is holding on to hope that the situation will soon improve.

“Contract signings for the past three months have been little changed, implying the market appears to be stabilizing,” Yun said. “Moreover, buyer traffic information from our monthly Realtor survey shows a modest turnaround, and some weather delayed transactions should close in the spring.”

NAR projections call for existing-home sales to total approximately 5.0 million this year, a slight decline from 2013.

Pending sales rose modestly in the Midwest and West, whose regional indexes were up to 95.3 and 86.1, respectively. Those gains were offset by bigger declines in the Northeast (down to 77.1) and the South (down to 106.3).

Year-over-year, all four regions reported declines in pending home sales.