The National Association of Realtors Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, rose 0.1% to 90.7 from 90.6 in April.  That is 6.7% higher than last May, when the index stood at 85.0.  The last 4 consecutive monthly gains occured in late 2004.

But don’t break out the bubbly just yet.  Lawrence Yun, NAR chief economist, cautions that there could be delays in closure of home contracts. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” said Yun.

“The pronounced increase in April and the fact that May sustained this rise does indicate that actual existing home sales are poised to rise in the coming month or two,” said Joshua Shapiro, chief U.S. economist for MFR.

Regionally, the pending home sales index rose 3.1% to 80.9 in the Northea  st, increased 2.2% to 96.9 in the West, dropped 1.3% to 89.2 in the Midwest, and dropped 1.7% to 92.6 in the South.

[thanks to Chris McLaughlin for the stats!]