U.S. Pending Home Sales YoY

U.S. Pending Home Sales YoY tracks the annual change in signed contracts to buy existing homes, offering a forward-looking view of housing demand before sales are completed.

Economic IndicatorsModerate volatilityUnited States Pending Home Sales YoYU.S. Pending Home Sales annual changepending home sales year-over-yearNAR pending home sales

Full explanation

U.S. Pending Home Sales YoY measures how the number of signed contracts to buy existing homes has changed compared with the same month a year earlier. It is based on the National Association of Realtors Pending Home Sales Index, which tracks contract activity for existing single-family homes, condominiums and co-ops before the transaction closes. Because contracts usually precede completed sales, the series is watched as a forward-looking signal for existing-home sales. The year-over-year rate helps compare current housing demand with the same seasonal period in the prior year.

Why traders watch it

Traders watch pending home sales because housing is sensitive to mortgage rates, household income and credit conditions. A stronger reading can point to firmer consumer demand and future housing-related activity, while a weaker reading can signal cooling demand in an interest-rate-sensitive part of the economy.

Stronger vs weaker outcomes

A higher-than-expected YoY reading may be interpreted as a sign of stronger housing demand and potentially firmer growth conditions. A lower-than-expected reading may be interpreted as softer housing demand or pressure from affordability, mortgage rates or credit conditions.

Typical volatility

Moderate. Pending contracts are not completed sales, so cancellations, financing problems, inspections and appraisal issues can prevent some transactions from closing. Revisions, regional differences and low inventory can also affect interpretation, and the YoY comparison may be influenced by an unusually strong or weak base period.

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