An index that gives insight into future home sales rose 2.4% in June after jumping 8.2% in May, a sign that not all consumers are spooked by the housing market.
The National Association of Realtors (NAR) reported Thursday morning that its pending sales index hit 90.9 in June, up from 8.8 in May.
It marks the second consecutive monthly increase in the index and should lead to an "overall improvement in closed sales in the upcoming months," said NAR chief economist Lawrence Yun said.
The index is based on contracts signed in June, but the actual sales might not close for another month or two.
Last week, NAR reported that existing home sales for June were unchanged from May. Yun blamed an "unusual spike" in contract cancellations for the disappointing report.
In releasing the PSI report on Thursday, Yun indicated that cancellations are not always final. “Though a higher than normal cancellation rate can hold back final closing figures, it could well be that some past cancellations are nothing more than delayed buying decisions rather than outright cancellations," the chief economist said.
Meanwhile, the Realtors revised their 2011 forecast for sales of previously owned homes downward to just below 5 million units (4,993,000). In March, before the spring home buying season started, the trade group had forecasted 5.28 million sales for this year.
