Pending Home Sales Index Rises

A forward-looking indicator of existing-home sales rose 6.3% in April, its highest level since October, according to the National Association of Realtors. The NAR's Pending Home Sales Index, which is based on sales contracts signed in April, rose to 88.2 in April from 83.0 in March. On a year-over-year basis, the index was down 13.1%. "Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants," NAR senior economist Lawrence Yun said. "Sharp price reductions are leading to a quicker discovery of price equilibrium points. The West is already seeing year-over-year gains in pending contracts." The NAR can be found online at http://www.realtor.org.