The National Association of Realtors (NAR) released its Pending Home Sale Index data for December 2015, suggesting an increase in pending home sale activity from the previous month. Data analyzed by FindTheHome shows that the index value for pending home sales was 106.8, which represents a 0.1% increase from the 106.7 index value reported last month. The pending home sale index reached as high as 112.3 in May 2015.
Lawrence Yun, NAR chief economist, offered an explanation for the near-standstill in the index this month. "Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas. With homebuilding still grossly inadequate, steady price appreciation and tight supply conditions aren't going away any time soon."
The Pending Home Sales Index is a real estate indicator based on the number of pending sales of existing homes. A pending sale usually means that there is an agreement between the buyer and seller, but the transaction is not yet finalized. The number of pending sale contracts recorded by NAR determines the index value for that month. For reference, an index value of 100 is equal to the pending sale contract activity in 2001, the first year that this index was published.