The latest pending home sales data tracked by the National Association of Realtors signal that the housing market is returning to more balanced conditions, according to a recent report. In February, the Pending Home Sales Index, which gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed, decreased 5.2% to 117.7 from the reading one year earlier. February’s PHSI also fell 0.8% from January’s upwardly revised reading of 118.6. An index of 100 or more generally indicates a high level of home sales activity.

The PHSI declined across the nation in February. On a regional basis, the PHSI was highest in the South, where it edged down 0.1% from one year earlier to 129.3. In the West, the index fell 14.8% to 110.9. The Midwest and Northeast regions also experienced annual declines, falling to 114.3 and 107.9.