The Pending Home Sales Index from the National Association of Realtors (NAR) rose in October on both a month-to-month and year-over-year basis.
The forward-looking indicator based on contract signings jumped 10.4% to an index of 93.3 in October, compared with a reading of 84.5 in September. The latest figure is up 9.2% compared with October 2010.
"Home sales have been plodding along at a subpar level, while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years," said Lawrence Yun, NAR chief economist. "We hope this indicates more buyers are taking advantage of the excellent affordability conditions."
Earlier this week, Consumer Confidence showed a similar, double-digit surge -- increasing to 56.0 in November, compared with 40.9 in October.