Pending Home Sales Hit Nine-Year High

The National Association of Realtors Pending Home Sales Index continued its upward trend in April. The pending home sales index (PHSI) includes existing homes with signed contracts that haven’t completed the closing process. Home buyers and sellers generally complete the closing process within one to two months after a purchase contract is signed. However, sometimes a pending sale fails to make it to closing. For example, a home buyer can renege if financing falls through or an inspection turns up something unexpected. Generally, the PHSI is a pretty solid predictor of existing home sales one or two months into the future. But April’s existing home sales numbers failed to live up to the expectation created by February and March’s pending home sales numbers. So is there a reason why pending home sales and existing home sales diverged? Watch this Real Estate Minute to find out. Be sure subscribe to my YouTube channel for the latest real estate tips and news: http://www.youtube.com/subscription_center?add_user=expertrealestatetips And for more of my real estate and personal finance tips: Read my blog: http://thinkglink.com See my tweets: http://www.twitter.com/glink Follow me on Facebook: http://www.facebook.com/ilyceglink Here’s the URL for the National Association of Realtors Pending Home Sales Index: http://www.realtor.org/topics/pending-home-sales