Pending home sales increased 3.4% to an index reading of 112.4 in April, after a revised 1.2% increase to 108.7 in March, according to a report released Wednesday by the National Association of Realtors.
The index is at its highest level since May 2006.
The March increase was first reported as 1.1% to 108.6.
Economists polled by Thomson Reuters predicted the index would be up 1.0%
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index increased 14.0% from last April, when the index was 98.6.
Regionally, pending sales were better. The Northeast saw a 10.1% surge to 88.3, while sales rose 5.0% in the Midwest to 113.0. In the South, sales grew 2.3% to 129.4, and sales increased 0.1% to 103.8 in the West.
"Realtors are saying foot traffic1 remains elevated this spring despite limited - and in some cases severe - inventory shortages in many metro areas," NAR Chief Economist Lawrence Yun said. "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."
This has sent prices up in many markets, Yun said.