Pending Home Sales Surge in May

Washington, DC, June 29, 2011 -- Pending home sales rose 8.2% in May, the National Association of Realtors said Wednesday.

The 13.4% gain from May 2010 levels marks the first time in 13 months that contract activity was above year-ago levels.

"Absorption of inventory is the key to price improvement, and this solid gain in contract signings implies that home values in many localities are or will soon be stabilizing as inventories get absorbed at a faster pace," said NAR Chief Economist Lawrence Yun.