NAR: Resales May Have Hit Bottom

The National Association of Realtors has reported that existing-home sales may have hit bottom in August based on the latest reading of its pending home sales index.A leading indicator of home sales, the PHSI jumped 4.3% in August, from 105.6 in July to 110.1. The index is down 14.1% since August 2005. NAR chief economist David Lereah said the index indicates that existing-home sales reports for September and October should show "fairly stable" sales, "although a slight decline is possible." If sales level out, "we should be able to draw down on the inventory supply early next year to the point where home prices will rise, but at a slower pace than historic norms," Mr. Lereah said.