Home Sales up, UP!

By Jeff Bater
Of DOW JONES NEWSWIRES WASHINGTON --

Pending home sales in the U.S. climbed a fifth month in a row in June, the longest streak in six years and another sign of recovery in the housing sector.The National Association of Realtors' index for pending sales of previously owned homes increased 3.6% in June to 94.6 from 91.3 in May, the industry group said Tuesday.Year over year, the index was 6.7% above the level of 88.7 in June 2008.The last time sales ran up five straight months was in 2003, the NAR said.The index is based on signed contracts for previously owned homes and serves as a forecasting tool for the used housing market.The 3.6% monthly increase was much larger than the 0.5% advance private analysts projected for June.Last month, the NAR reported existing-home sales rose in June, up 3.6% to a 4.89 million annual rate. Buyers are pouncing on a big drop in prices."Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who've been on the sidelines," said Lawrence Yun, chief economist for NAR.New-home sales soared in June and builders increased groundbreakings, reflecting a bit of optimism seen nudging the housing industry toward a slow, painful recovery.The NAR projects existing-home sales at 4.91 million this year and 5.16 million in 2010. That compares with 4.91 million in 2008. The median price for an existing home is seen at $174,100 in 2009 and $179,800 in 2010. It was $198,100 in 2008.A month ago, the NAR forecast 2009 sales at 4.89 million and 2010 sales at 5.16 million. The 2009 median price was projected at $178,000 and the 2010 price at $184,900.The NAR's pending home sales index was designed to try measuring which way the housing market is going in the future. It is based on pending sales of existing homes, including single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction hasn't closed. Pending sales typically close within one or two months of signing.By region, the pending sales index for the Northeast increased 0.4% in June from May; it had gone up 5.8% since June 2008. The Midwest increased 0.8% in June from May; it had gone up 11.6% since June 2008. The South increased 7.1% in June from May; it had gone up 8.9% since June 2008. The West increased 2.9% in June from May; it had gone down 0.2% since June 2008.-By Jeff Bater, Dow Jones Newswires; 202-862-9249; jeff.bater@dowjones.com