Pending home sales on the rise, West leads pack

The latest read on the housing market reveals unexpectedly good news - particularly in the Western United States.

The National Association of Realtors reports pending home sales nationally rose 7.4 percent from July to August for an index reading of 93.4. That is the highest level since June 2007. Wall Street economists surveyed by Thomson/IFR had predicted the index would fall to 84.9. The index, which sunk to a record low of 83 in March, stood at 85.8 in August 2007.

The Pending Home Sales Index in the West surged 18.4 percent to a reading of 110 in August and remains 37.8 percent above a year ago.

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In the Northeast, the index jumped 8.4 percent to 79.8 and is 2.0 percent higher than in August 2007. The index in the Midwest rose 3.6 percent to 84.5 in August and is 6.6 percent above a year ago. In the South, the index increased 2.3 percent to 96 but is 2.1 percent below August 2007.

An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined as well as the first of five consecutive record years for existing-home sales.