The National Association of Realtors (NAR) released its pending home sales figures for the U.S. on Monday. Pending home sales in the U.S. rose 0.9% in May, exceeding expectations for a 1.2% increase, after a 2.7% gain in April. April's figure was revised down from a 3.4% rise.

Pending home sales increased in two of four regions of the country.

"The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring. It's very encouraging to now see a broad based recovery with all four major regions showing solid gains from a year ago and new home sales also coming alive. " the NAR's chief economist Lawrence Yun said.

He warned that home prices could increase "to an unhealthy and unsustainable pace" if new and existing house supply will not rise.