pending home sales indicate modest slowing ahead

The latest pending home sales data tracked by NAR signal modest slowing in the housing market over the next few months, according to a recent report.

In March, the Pending Home Sales Index (PHSI), which gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed, decreased 6 percent to 116.2 from the reading one year earlier.

March's PHSI also fell 1.2 percent from February's upwardly revised reading of 117.6. An index of 100 or more generally indicates a high level of home sales activity.The PHSI declined across the nation in March.

On a regional basis, the PHSI was highest in the South, where it edged down 1.6 percent from one year earlier to 127.9. In the West, the index fell 13.3 percent to 111.

The PHSI also declined in the Northeast and Midwest regions, falling to 112.9 and 106.1, respectively.

**taken from the california association of realtors bulletin, dated may 4, 2006.