The National Association of Realtors' Pending Home Sales Index increased in March for the first time in nine months, though the index remains below average and nearly eight percent behind March 2013 levels. Economists expect positive indicators from the housing market as the year continues, despite slow winter activity that has led into a slower spring.

Pending home sales rose in March following months of stagnant activity, marking the first positive movement by the economic bellwether in nine months and a bright spot in a gloomy, softening housing market.

According to an April 28 report from the National Association of Realtors (NAR), the Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 3.4 percent to 97.4 from an upwardly revised 94.2 in February. The index remains 7.9 percent below March 2013, when it reached 105.7.

"After a dismal winter, more buyers got an opportunity to look at homes last month and are beginning to make contract offers," said Lawrence Yun, NAR'S chief economist. "Sales activity is expected to steadily pick up as more inventory reaches the market, and from ongoing job creation in the economy."

In the Northeast, the index increased 1.4 percent to 78.8, but is 5.9 percent below a year ago. In the Midwest, the score slipped 0.8 percent to 94.5 in March, and is 10.1 percent below March 2013. Pending home sales in the South rose 5.6 percent to an index of 112.7 in March, but are 5.3 percent below a year ago. The index in the West increased 5.7 percent in March to 91.0, but is 11.1 percent below March 2013.

Existing-home sales are expected to total just over 4.9 million this year, below the nearly 5.1 million in 2013; With ongoing inventory shortages in much of the U.S., however, the national median existing-home price is expected to grow between 6 and 7 percent in 2014. Although home sales are expected to trend upward into 2015, the year began on a weak note and total sales are unlikely to match the 2013 level.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.