Pending Sales Index Signaling Good News?

A leading indicator of existing-home sales edged up 0.4% in June, and it could be a sign that sales are leveling off after a 10% decline since last summer, according to the National Association of Realtors.The NAR's pending sales index rose from 113.5 in May to 113.9 in June. It was the second consecutive monthly increase in the index, which is off 9.6% from the level recorded in June 2005. NAR chief economist David Lereah said the small rise in the index is "good news" and indicates that sales are "stabilizing" or leveling off. He also said the index and other indicators are showing that the housing market is still in transition and "striving for balance" -- which could take several months.