An index that tracks signed contracts to purchase previously occupied homes likely rose in February after falling to a record low a month earlier.
The National Association of Realtors' report on pending sales is expected to edge up to 82, from January's low of 80.4, according to economists surveyed by Thomson Reuters. The report is scheduled to be released Wednesday at 10 a.m. EDT.
Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future home sales.
The Realtors reported last week that existing home sales rose 5.1 percent in February, the largest increase in nearly six years. Economists say sales, while still at levels not seen since 1997, may finally be coming back to life since declining sharply following the stock market plunge last autumn.
Prices, however, are expected to keep falling for at least another year. Tens of thousands of homes are tied up in the foreclosure process and not yet for sale. Plus, as the recession deepens and job losses mount, many buyers are likely to stay on the sidelines.
The Realtors estimate that 45 percent of existing home sales are now foreclosures and other distressed properties.
Many in the real estate industry are counting on an $8,000 tax credit for first-time homebuyers as their best hope for boosting flagging sales. That incentive was included in the economic stimulus package signed by President Barack Obama earlier this year.
