The US saw an unexpected increase in agreements to buy homes in June, according to figures from the National Association of Realtors (NAR).
The association's pending home sales index climbed 5.3% in June to 89 from 84.5 in May. It marked the highest reading since October.
The association welcomed the news saying a rise in contract activity was needed for a housing recovery.
A pending sale denotes one that has been agreed but not finalised.
But while the index rose unexpectedly compared with the previous month, the figure was 12% down on June 2007.
Repossessed properties
The news came after separate figures in June showed completed sales of existing homes dropped more than forecast, sending activity to the lowest level for 10 years.
One explanation for June's rise in pending home sales could be that banks were pushing down prices of repossessed properties in a bid to boost sales.
Pierre Ellis, an economist at Decision Economics in New York, highlighted that the stock of unsold homes was still significant.
"This is telling us that sales have stabilised. This raises some hope that we've flattened out, which doesn't mean the problem is solved," he said.
But there are hopes that a recent housing plan, including tax incentives for first-time buyers, should help boost sales.
The US housing market has been hit by a slowdown, following a rise in defaults in the sub-prime sector, which aims at those with limited credit histories or unpredictable incomes.
Problems that initially appeared in the sub-prime sector have turned into a wider problem, with house prices falling, defaults rising and individuals finding it harder to get mortgages.
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