Home sales in the United States were proceeding at a robust pace in February, with contract signings showing a strong increase from the previous month and a more modest year-over-year increase.

The National Association of Realtors said the Pending Home Sales Index for February stood at 109.1. This figure was up 3.5 percent from a downwardly revised Pending Home Sales Index of 105.4 in January.

The figure was also up 0.7 percent from the Pending Home Sales Index of 108.3 in February 2015. The National Association of Realtors says the index has experienced a year-over-year increase for 18 months in a row. While the pace of pending home sales was at its highest point since the July 2015 figure of 109.8, the year-over-year gain was the smallest one recorded in the past 18 months.

The Pending Home Sales Index records transactions where a contract has been signed for an existing home sale, but not yet closed. A pending sale is usually closed within one or two months. An index of 100 is equal to pending sales activity in 2001, when 5 million to 5.5 million existing homes were sold during the year.

"After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year and a modest, seasonal uptick in inventory," said Lawrence Yun, chief economist at the National Association of Realtors. "Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what's being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau."

Existing home sales for 2016 are currently expected to reach 5.38 million. If this forecast is achieved, it will mark a 2.4 percent increase from 2015. In that year, existing home sales increased 6.3 percent from the previous year.

Price growth moderated in February, with median home prices increasing 4.4 percent compared to February 2015. The National Association of Realtors said that while home price growth is still outpacing wage growth in the nation, it is a marked decrease from January's year-over-year price growth of 8.1 percent. The change in median existing home prices in 2016 is expected to be 4 to 5 percent, down from the year-over-year growth of 6.8 percent in 2015.

"Any further moderation in prices would be a welcome development this spring," said Yun. "Particularly in the West, where it appears a segment of would-be buyers are becoming wary of high asking prices and stiff competition."

The Northeast was the only region where the Pending Home Sales Index for February was lower than the previous month, falling 0.2 percent from January to stand at 94. However, the region had the strongest year-over-year growth; the index was 12.6 percent higher than in February 2015.

The Midwest had the strongest growth in pending sales from the previous month, rising 11.4 percent to 112.6 in February. The year-over-year growth was more modest, increasing 2.5 percent.

Pending sales were up from January in both the West and South, but down compared to the previous year. The Pending Home Sales Index in the West was 96.4, a 0.7 percent increase from January and 6.2 percent drop from the previous year. The index for the South rose 2.1 percent in February to 122.4, but had a year-over-year decline of 0.4 percent.