An index from the National Association of Realtors that tracks pending home sales edged up 2% in January to the highest level since April 2010 when the government was still handing out homebuyer tax credits.
The rise in the index from December is a "hopeful sign going into the spring home-buying season," said NAR chief economist Lawrence Yun.
"Given more favorable housing market conditions, the trend in contract activity implies we are on track for a more meaningful sales gain this year," Yun added.
NAR economists believe existing home sales will rise almost 7% this year to 4.55 million units, which would be the best showing since 2008.
NAR's pending sales index is based on signed contracts, which usually translates into sales a month or two down the line. The PSI hit 97 in January, up from 95.1 in December. The December reading was revised downward from 96.6. Year-over-year, the PSI is up 8%.
"Movements in the index have been uneven, reflecting the headwinds of tight credit," Yun said. “If and when credit availability conditions return to normal, home sales will likely get a 15 percent boost."
