Home sales across America were up in May, with pending contracts matching the highest level the National Association of Realtors has seen in the past two years.
The index of pending home resale's climbed 5.9 percent to 101.1, matching a two-year high reached in March, after a 5.5 percent decline in April, according to a report from the National Association of Realtors (NAR) released Wednesday.
The median forecast of 39 economists surveyed by Bloomberg News called for a 1.5 percent gain in May.
A reading of 100 or above is a sign of health. The index hit 101.1 in March, as well. Taken together, those two months were the highest index readings since April 2010 when buyers rushed to beat the deadline for the home buyer tax credit.
The latest increase in home contract signings represents the thirteenth consecutive month of year-over-year gains, according to Lawrence Yun, chief economist with the association, said the NAR.
The data, which reflects contracts but not escrow closings, is a leading indicator for the housing sector based on pending sales of existing homes.
"Actual closings for existing-home sales have been notably higher since the beginning of the year,'' Yun said in a statement. "We're on track to see a 9- to 10 percent improvement in total sales for 2012."
Another report today showed orders for durable goods climbed more than forecast in May, easing concern that U.S. manufacturing is faltering. Bookings rose 1.1 percent, the first gain in three months, the Commerce Department said.
Pending home sales provide insight into actual contract closings a month or two later. Purchases of existing homes, which made up about 93 percent of the housing market last year, are tabulated when the contract closes.
