The pending home sales index rose more than expected and climbed to the highest level in nine years in April.
According to the National Association of Realtors, sales rose 3.4% month-over-month, and 13.4% year-over-year.
The index climbed to 112.4, the highest level since May 2006.
Economists had forecast that sales, based on contracts for previously owned homes, rose 0.9% month-over-month, and 10.9% year-over-year, according to Bloomberg.
In March, pending home sales crushed expectations, rising 1.1% from the previous month, and 13.4% year-over-year.
NAR chief economist Lawrence Yun wrote in the release: “Realtors are saying foot traffic remains elevated this spring despite limited — and in some cases severe — inventory shortages in many metro areas. Homeowners looking to sell this spring appear to be in the driver’s seat, as there are more buyers competing for a limited number of homes available for sale.”
“As a result, home prices are up and accelerating in many markets.”