PENDING HOME SALES INDEX INCREASES 5.3 PERCENT IN JUNE

From National Association of Realtors (click for full article):

The Pending Home Sales Index, based on contracts signed in June, increased 5.3 percent in June to 89.0 from 84.5 in May, according to the latest report from NAR.

According to NAR, approximately 2.5 million first-time home buyers are expected to take advantage of the temporary tax credit, which economists predict will increase existing home sales by 7 percent to 5.51 million in 2009.

"The rise in pending home sales was broad-based with all four regions showing gains," Lawrence Yun, NAR chief economist said. "This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009."