InterNACHI's Pending Home Sales Indicator (IPHSI) is a real-time leading indicator created by the International Association of Certified Home Inspectors (InterNACHI®) that tracks homes going under contract prior to the transactions actually closing.
InterNACHI® is the North America's largest inspection trade association, with more than 29,000 members. InterNACHI® members represent more than 90% of all home inspectors in the U.S. and Canada. Together, they have inspected more than $22 trillion dollars worth of real estate.
Home inspections are ordered early in the sales cycle, just after a home for sale goes under agreement. Hiring a home inspector is the very next step taken after an offer is accepted. Furthermore, sales agreements typically have inspection deadlines, causing inspectors to be hired immediately after a sales agreement is executed by all parties. InterNACHI® provides the inspection industry with a free, online inspection agreement system used thousands of times a day.
Historically, the largest bump in lifetime spending occurs just after someone purchases a home. New homeowners make improvements, buy furniture, etc. And even without that associated spending, the real estate industry constitutes the largest sector of North America's economy. Information about these home sales is used by stock brokers and money managers to make decisions. Each month, millions of trades are made immediately after pending home sales indexes are published.
InterNACHI's indicator (IPHSI) is presented as a chart that reveals if the number of homes going under contract is increasing or decreasing by looking at the number of inspection agreements being created and signed. The IPHIS produces valuable real-time information for stock market participants.
In comparison to other pending home sales indexes, InterNACHI's IPHSI chart is a superior indicator of future home sales.
|Other pending home sales indexes||InterNACHI's IPHSI Chart|
|Are released monthly.||Is released in real time, every day.|
|Are based on 3-to-6-week-old data.||Is based on today's live-time data.|
|Are based on data from all stages of the sales cycle.||Is based solely on inspection contract data created early in the sale cycle.|
|Are often based on delayed data voluntarily entered into the MLS by real estate agents, typically after the homes are inspected.||Is based on data from inspection orders the very second inspection agreements are generated by inspectors and signed by actual buyers under contract to purchase a home.|
|Are often based on mortgage applications, which only indicate appetite for credit by potential future buyers.||Is based on data from inspection orders the very second inspection agreements are generated by inspectors and signed by actual buyers under contract to purchase a home.|
|Are often based on new home starts and building permits, which only indicate past sentiment of home builders.||Is based on data from inspection orders the very second inspection agreements are generated by inspectors and signed by actual buyers under contract to purchase a home.|
|Are often based on U.S. data only.||Is based on data from both the U.S. and Canada.|
|Are single numbers calculated from unpublished data.||Is a chart of the actual un-manipulated data.|
|Are accompanied by commentary that attempts to explain market trend.||Is a chart that shows market trend.|
The IPHSI chart is updated once a day, but by August 2021 it will be published in live time. The IPHSI is currently not available publicly and is only visible to members of InterNACHI®. Members can view the most current IPHSI Chart by clicking the button below: