Pending Home Sales Gain Nearly 5% In June

When a contract to buy a house is signed, that home's sale is considered pending until the deal is closed weeks later. That makes contract signings a fairly reliable indicator of future home sales, since most signed offers lead to closed sales. The National Association of Realtors tracks pending home sales for this reason. Its Pending Home Sales Index is released monthly and is considered a good predictor of existing-home sales numbers. In June, the index moved 4.8 percent higher, with improvement seen in each of the country's four regions. Lawrence Yun, NAR's chief economist, says the growing supply of available homes is behind the increase. “The rise in housing inventory is beginning to lead to more contract signings,” Yun said. “Multiple offers are less intense, and buyers are in a more favorable position.”