Tuesday, June 2, 2009

Pending U.S. home sales in April posted the biggest monthly jump in nearly eight years, a sign that home sales are finally coming to life after a long and painful slump.

The National Association of Realtors says its seasonally adjusted index of sales contracts signed in April rose 6.7% to 90.3. Economists surveyed by Thomson Reuters expected the index would edge up to 85 from a reading of 84.6 in March. It was the biggest monthly jump since October 2001.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing home sales. The index was 3.2% above last year's levels and has risen for three straight months after hitting a record low in January.