Home Sales Take a Mild Dip

The number of home sales have taken a mild dip which is typical of a a housing boom peak.

The Pending Home Sales Index, the leading indicator for the housing market, slipped from near-record levels but remains historically high, according to the National Association of Realtors^®.

The Pending Home Sales Index,* based on data collected for May, stands at 124.9, which is 2.0 percent below April but 3.7 percent above May 2004. April’s downwardly revised reading of 127.5 was second only to a record of 128.1 in October 2004.

The index is based on pending sales of existing homes, including single-family and condos; a sale is pending when the contract has been signed but the transaction has not closed. Pending home sales typically close within one or two months of signing.

Watch for the Pending Home Sales Index too continue to fall as we move deeper into the stagnation period in many places. In many housing markets, the stagnation period will likely turn into a declining price period around this October.