Home Sales Contracts Surged in June

Washington, DC, Aug. 7, 2008--Home sales contracts unexpectedly rose across the country in June, but still were well below last year's levels, according to the National Association of Realtors.

NAR said its Pending Home Sales Index, which is based on contracts signed in June, was up 5.3 percent. It was the highest reading for the index since October, when it was at 89.8.

The pickup in June signings was in sharp contrast to forecasts by economists who had expected home sales contract signings to decline 1 percent.

The association's senior economist, Lawrence Yun, said the swings in monthly signings "indicates a housing market in transition" but it nonetheless was encouraging.

By region, the index showed a 3.4 percent increase in the Northeast but that level is still 15.4 percent below the June 2007 level. In the Midwest, the index rose 1.3 percent in June, which is still 13.3 percent below a year ago. In the South, the index jumped 9.3 percent but is 16.6 percent below June 2007. For the West, the index rose 4.6 percent to but it remains 1.7 percent below a year ago.