This was leaked
HBs were moving up well ahead of its release
Meanwhile, NAR again calling a bottom with 5% price increases in 2010
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DJ US Pending Home Sales Index +2.1% In Feb - NAR
. By Maya Jackson Randall
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--A forecasting gauge of home sales rose more than expected in February after hitting a record low the month before.
The National Association of Realtors' index for pending sales of previously owned homes jumped 2.1% to 82.1 from 80.4 in January, the industry group said Wednesday, adding that the data hint at a possible pickup of sales activity in coming months.
Private analysts projected pending sales would be a mere 0.1% higher during February.
The gauge had fallen 7.7% during January.
Still, The NAR pending sales index, based on signed contracts for previously owned homes, was 1.4% below the level of 83.3 in February 2008, when it was 83.3.
Lawrence Yun, NAR chief economist, was cautious about the seemingly favorable data, noting that the market continues to underperform.
"Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we'll see additional sales gains," he said in a statement. "More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity."
In its monthly forecast on the industry, the NAR projected existing-home sales at 4.96 million this year and 5.25 million in 2010. That compares to 4.91 million in 2008.
The median price for an existing home is seen at $188,500 in 2009 and $196,200 in 2010. It was $198,600 in 2008.
A month ago, the NAR forecast 2009 sales at 4.93 million and 2010 sales at 5.21 million. The 2009 median price was projected at $188,800 and the 2010 price at $196,200.
The NAR's pending home sales index was designed to try to measure which way the housing market will go 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, pending sales in the Northeast grew 10.6% in February from January; they were down 11.2% since February 2008. Midwest activity grew 14.5% in February from January; it's grown 3.4% since February 2008. Activity in the South rose 4.4% in February from January; it has fallen 0.1% since February 2008. In the West pending sales fell 13.5% in February from January; they're down 1.7% since February 2008.
-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255, maya.jackson-randall@dowjones.com
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(END) Dow Jones Newswires
April 01, 2009 10:00 ET (14:00 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.- - 10 00 AM EDT 04-01-09
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