Pending home sales surged 3.4% to an index reading of 97.4 in March, after a revised 0.5% drop to 94.2 in February, according to a report released Monday by the National Association of Realtors.
The increase in the index was the first in nine months, NAR said.
The February reading was initially reported as 0.8% decline to 93.9.
Economists polled by Thomson Reuters predicted that the index would be up 1.5%
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index is off 7.9% from last March, when the index was 105.7.
Regionally, pending sales were mostly higher. The Northeast saw a 1.4% gain to 78.8, while sales slid 0.8% in the Midwest to 94.5. In the South, sales grew 5.6% to 112.7, and sales climbed 5.7% to 91.0 in the West.
"After a dismal winter, more buyers got an opportunity to look at homes last month and are beginning to make contract offers," NAR Chief Economist Lawrence Yun said. "Sales activity is expected to steadily pick up as more inventory reaches the market, and from ongoing job creation in the economy."
