A forecasting gauge of U.S. home sales resumed falling in July. The National Association of Realtors’ index for pending sales of previously owned homes dropped 3.2% to 86.5 from 89.4 in June, the industry group said today.

Economists had projected pending home sales would drop 2.1% during July. Sales rose in June, up 5.8%.

“Pending home sales are oscillating month-to-month, with the long-term trend essentially flat,” said Lawrence Yun, NAR’s chief economist, in a release.

In its monthly forecast on the industry, the NAR projected existing-home sales at 5.01 million this year and 5.35 million in 2009. That compares with 5.65 million in 2007.

The median price for an existing home is seen at US$203,600 in 2008 and US$208,500 in 2009. It was US$218,900 in 2007.

The NAR pending sales index, based on signed contracts for previously owned homes, was 6.8% below the level of 92.8 in July 2007.

The NAR’s pending home sales index was designed to try measuring which way the housing market is going in the future.

By region, pending sales in the Northeast decreased 7.5% in July from June; they had fallen 13.2% since July 2007. Midwest sales rose 2.8% in July from June; they had dropped 2.4% since July 2007. The South was flat in July compared with June; sales had dropped 13.4% since July 2007. The West decreased 10.6% in July from June; sales had gone up 6.5% since July 2007.

Meanwhile, the inventories of U.S. wholesalers rose more than expected in July, while sales of goods were pushed lower by declining auto, machinery and petroleum sales.

Wholesale inventories rose 1.4% to a seasonally adjusted $441.26 billion, after increasing by a downwardly revised 0.9% in June, the Commerce Department said today. Originally, June inventories were estimated to have climbed 1.1%.

July’s gain in inventories exceeded Wall Street analyst expectations for a 0.6% increase.