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EHS

Existing-home Sales: 4.57 million

Seasonally adjusted annual rate, which is the actual rate of sales for the month, multiplied by 12 and adjusted for seasonal sales differences.

PHSI

Pending Home Sales Index: 84.6

The Pending Home Sales Index measures housing contract activity. An index of 100 is equal to the level of activity during 2001, the benchmark year.

Source: NAR Research

Sales Dip, But Outlook Is Up

The pace of existing-home sales slowed 3 percent in March to 4.57 million units, giving up some of the gains it had seen in February. Yet the easing could be short-lived because NAR’s forward-looking Pending Home Sales Index is up. The index gained 3.2 percent to a level of 84.6. NAR says first-time buyers make up half of those in the market, drawn by low rates and the first-time buyer tax credit.

*Numbers are adjusted from figures published in the May 2009 issue.

Buyer Traffic Drives Optimism

Practitioners’ expectations for sales activity over the next six months continue to trend up. In April, practitioners said they expected improved conditions, led by gains in buyer traffic. Confidence has been on an upward swing since December.

Results are based on 2,758 responses to 6,000 surveys sent to large and small real estate offices. The survey asks practitioners to indicate whether conditions are strong (100 points), moderate (50), or weak (0). Responses are averaged to derive results.