Pending Home Sales is a US economic indicator. It reflects the number of home sales contracts signed in the given month compared to the prior, but the transaction has not been completed yet.
A house is in a pending status the minute a contract is signed. But, the trade only ends if the inspection and financing ends well.
The National Association of Realtors (NAR) releases the pending home sales number monthly. It has over 1.5 million members from residential and commercial real estate industries.
The Pending Home Sales indicator is a leading indicator of the US housing market which forecasts sales for two months in advance because contract completion takes six to eight weeks.
Importance of Pending Home Sales
The pending home sales indicator represents the health of an economy. It is released monthly.
A higher pending home sales number indicates an improvement in the economy.
So, a higher-than-expected value is a bullish sign for the USD and the United States economy. And vice versa.