Staff and wire report

Pending sales of homes in Ohio rose 16 percent in July compared with July 2011, another sign the housing market is growing stronger, a trade association said Wednesday.

Ohio’s July Pending Home Sales Index of 110.8, a forward-looking indicator based on contract signings, rose from the July 2011 index of 95.

July was the 15th consecutive month of growth compared to the prior year, the Ohio Association of Realtors said Wednesday.

An index of 100 is considered healthy. It’sequal to the average level of pending purchase contracts during 2008, which marked the end of five consecutive record years for existing home sales and the onset of the recession, the association said.

Contract signings typically indicate where the housing market is headed. There’s generally a one- to two-month lag between a signed contract and a completed deal.

The July 2012 pending sales index of 110.8 marks a 10.8 percent increase from the benchmark July 2008 index of 100. Additionally, the current results also beat the marks posted in Ohio in 2009 (91.2) and 2010 (72.62).

A pending sale or a sale “under agreement” is when the buyer and seller agree on terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as such.

The National Association of Realtors said Wednesday that its index of sales agreements jumped 2.4 percent in July to 101.7. That’s higher than June’s reading of 99.3. It’s also the highest reading since April 2010, the last month that buyers could qualify for a federal home-buying tax credit.

The Realtors’ group said contract signings increased in July in all regions of the U.S. except for the West, which it said has a severe shortage of available homes for sale.

Still, the housing market has a long way to go to reach a full recovery. Some economists forecast that sales of previously occupied homes will rise 8 percent this year to about 4.6 million. That’s still well below the 5.5 million annual sales pace that is considered healthy.

The Associated Press contributed to this report.