Jacksonville new home construction growth in a contributing factor for higher PHSI in the South.
The Jacksonville new home construction market is no doubt helping boost the overall Pending Home Sales Index (PHSI), which is a forward-looking indicator based on contract signings. The PHSI climbed 3.3 percent to 105.9 in July from 102.5 in June. The index is at its highest level since August 2013 (107.1). A PHSI of about 100 is considered an average.
Pending home sales in the South increased 4.2 percent to an index of 119.0 in July. PHSI is a good indicator of the health of the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed. Economists say interest rates remaining low are a factor, although the recent news from the Federal Reserve may have interest rates rising by end of 2014.
