Pending home sales surged in October, bucking the seasonal trend, according to the National Association of Realtors.
NAR's Pending Home Sales Index jumped 5.3 percent to 104.8, up from 99.6 in September. Compared to the October 2011, the PHSI was up 13.2 percent from 92.6. The October increase marked the 18th straight month of year-over-year gains and the highest level in more than five years.
"We've had very good housing affordability conditions for quite some time, but we're seeing more impact now from steady job creation, and rising consumer confidence about home buying now that home prices have clearly turned positive," said NAR chief economist Lawrence Yun.
Anika Khan, economist at Wells Fargo, told Bloomberg that home sales could continue to improve as people begin to feel more comfortable with the value of their homes. If this occurs, more people may put their homes on the market, which could help appease the high demand the market is currently seeing.
Much of that demand has come from mortgage rates hitting record lows numerous times in the past couple months. However, the limited supply of homes available has held back some of that demand.