Pending home sales increased 1.1% to an index reading of 108.6 in March, after a revised 3.6% increase to 107.4 in February, according to a report released Wednesday by the National Association of Realtors.
The index is at its highest level since June 2013.
The February increase was first reported as 3.1% to 106.9.
Economists polled by Thomson Reuters predicted the index would be up 1.2%
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index increased 11.1% from last March, when the index was 97.7.
Regionally, pending sales were mixed. The Northeast saw a 1.5% drop to 80.2, while sales slid 2.5% in the Midwest to 107.5. In the South, sales rose 4.0% to 126.5, and sales increased 1.7% to 103.7 in the West.
"Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year," NAR Chief Economist Lawrence Yun said. "While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news. It indicates this year's activity is being driven by more long-term homeowners."
Despite supply issues and rising prices, Yun expects the market to gradually improve.
