Housing Market March 2009According to the just released Pending Home Sales Index (PHSI), released by the National Association of Realtors (NAR), seasonally-adjusted home sales increased in March 2009 by 3.2% from previous month levels and by 1.1% from the same month last year. PHSI is a forward-looking indicator based on contracts signed during the month for which it is reported. NAR news release attributes this increase to historically good housing affordability conditions currently prevailing in the US housing market. It should be noted that, according to the numbers released by NAR, there was a significant differentiation in pending home sales trends across regions, not only in terms of magnitude but also in terms of direction. In particular, on a month-to-month basis the seasonally-adjusted inxed decreased in the Northeast and Midwest by 5.7% and 1.0%, respectively, while it increased by 8.5% and 3.9% in the South and West, respectively. The changes in the PHSI on an annual basis and their differences across regions were more dramatic. In particular, the PHSI decreased in the Northeast by 24.1% compared to its March 2008 level, while it increased in the other regions at rates ranging from 8.2% in the Midwest to 1.7% in the West. NAR chief economist said that several months of sustained growth is needed before concluding that the housing market has entered the recovery phase.
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