The US housing market continued its streak of renewed strength on Thursday, as figures showed that pending home sales jumped for the seventh month running, climbing to the highest level in nearly two-and-a-half years.

The data, released by the National Association of Realtors, which reflect deals that have been signed but not completed, showed that pending home sales rose by 6.4 per cent in August and were up by 12.4 per cent from a year ago. The surge has been attributed to depressed prices and an $8,000 first-time home buyer tax credit, which has spurred transactions.