Pending Home Sales Index Rises

The Pending Home Sales Index rose to 126.3 in June, 0.6% higher than in May and 3.6% above that of a year earlier, according to the National Association of Realtors.The index is based on pending sales of existing homes, including single-family, condominium, and cooperative. (A sale is deemed pending when the contract has been signed but the transaction has not closed, a period that typically lasts one or two months, the NAR said.) David Lereah, the NAR's chief economist, said the index indicates that historic levels of home sales will continue in the near future. "Existing-home sales will stay in record territory for transactions in July and August," Mr. Lereah said. "There is some volatility to the index due to the short history of seasonal factors, so we're not predicting another record month, but it certainly is possible." (Resales reached a record high in June.) An index of 100 is equal to the average level of contract activity in 2001, the first year for which the NAR has analyzed data. The association can be found online at http://www.realtor.org.