What is PHSI?
After several years of study and data collection, the NATIONAL ASSOCIATION OF REALTORS® developed the Pending Home Sales Index (PHSI), a new leading indicator of housing market activity.
Based on the data from Multiple Listing Services (MLSs) and large brokers, the index provides advance information on future home-sales activity and offers more solid information on changes in the direction of the market than any of the indicators currently available.
Specifically, Pending Home Sales become Existing-Home Sales one-to-two months later. This means that we can use an index derived from Pending Home Sales to predict actual home sales activity.