The latest pending home sales data tracked by NAR indicate a steady pace of home sales in the coming months, according to a recent report. In December, the Pending Home Sales Index (PHSI), which gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed, stood at 112.4, up 4.9 percent from the previous month and down 4.4 percent from a year ago. A PHSI of 100 or more generally indicates a high level of home sales activity. The year-to-year declines in the index have narrowed over the last six months.

Despite month-to-month gains, the PHSI declined across the nation in December when compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 4.2 percent to 129.8. In the West, the index fell 4.9 percent to 112.2. The PHSI also declined in the Midwest and Northeast regions, falling to 103.2 and 89.9, respectively.