Pending home sales are up, indicating a stabilization is taking place in the housing market, according to the National Association of Realtors® (NAR).



The index is a leading indicator for the housing sector. Based on pending sales of existing homes, it predicts the level of closed home sales in the following two months. This month’s numbers, based on contracts signed in August, rose 4.3 percent to a level of 110.1 from a reading of 105.6 last month.



David Lareah, NAR’s chief economist, said the rise in the index is a hopeful sign. “The Pending Home Sales Index shows home sales should be fairly stable over the next two months”.