Pending sales of previously owned U.S. homes unexpectedly rose in April to the highest level in six months as foreclosed properties flooded the market and drove prices sharply lower, a real-estate trade group said Monday. The National Association of Realtors (NAR) said its index for pending sales of existing homes rose to 88.2 from 83.0 in March, the lowest since the index was started in 2001. The index stood at 101.5 in April 2007. A reading of 100 is equal to the average level of sales activity in 2001. Despite April's surprising increase, pending home sales remain more than 13 percent below last year's level. “Bargain-hunters have entered the market [in big numbers], especially in areas that have seen double-digit price declines,” said NAR chief economist Lawrence Yun. Regions of the country that have seen sharp price declines, such as the west, are now seeing a sales recovery, he said. Yun predicted that the median price of an existing home will drop 8.4 percent in the first half of the year before stabilizing. He forecast that prices will rise 4.4 percent in 2009.
