The NAR today released their monthly pending sales report. Here are some key snippets:

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in September, rose 0.2 percent to a reading of 85.7 from an index of 85.5 in August. It was 20.4 percent lower than the September 2006 level of 107.6….The index in the West slipped 0.1 percent in September to 80.5 and is 25.6 percent below a year ago.  In the Northeast, the index dropped 10.1 percent in September to 69.5 and is 23.1 percent below September 2006…Lawrence Yun, NAR chief economist, said the housing market will improve from a steady unleashing of pent-up demand, and from a wide abundance of safer mortgage products. “The level of pent-up demand reaching the market next year is a bit uncertain, and it is possible for even higher home sales activity than we’re forecasting if buyers regain their confidence about the long-term benefits of homeownership.  Over the near term, home sales are likely to be fairly flat as the lingering impact of the credit crunch filters through the system through the end of the year.”

It is only one month of data, but this is modestly encouraging news.