Findings from the National Association of Realtors' (NAR) Pending Home Sales Index reveal that contract signings rose 8.2% in May, which is 13.4% higher thanMay 2010. This represents the largest gain sinceNovember 2010, and the greatest increase from year-ago percentages sinceApril 2010.

Lawrence Yun, chief economist for NAR, believes that this signals good news for residential real estate. "This solid gain in contract signings implies that home values in many localities are or will soon be stabilizing as inventories get absorbed at a faster pace," Yun said. According to the NAR study, pending home sales have steadily climbed during seven of the previous 11 months.

"The NAR study reflects what I've seen in high-endLos Angelesreal estate," saysMyra Nourmand, Los Angeles Real Estate Broker and author of the bookFrom Homemaker to Breadwinner.

The uptick in high-end real estate sales is often considered a sign of buying trends that will occur in other segments of the market. "Luxury homes are moving, escrows are closing, prices are coming down, and buyers realize it's a good time to buy. They're taking advantage of the market," says Nourmand.

For proof, Nourmand points to recent multi-million dollar homes that have sold in the area ofLos Angeleswhere she works, which includesBeverly Hills,Bel Air, Holmby Hills andBrentwood. In June, the 57,000-square-foot estate ofHollywoodproducer Aaron Spelling, which was listed for$150 million, was sold to billionaire heiressPetra Ecclestone. In addition, a$40 millionBel Airmansion and two homes inBeverly Hillsand Holmby Hills each listed for$20 millionrecently closed escrow.

Historically, the three-part formula for high curb appeal has been prime location, attractive architecture, and sought after square footage. The burst of the housing bubble caused a home's price to take precedence above all else - at least that's what it seemed like based on media reports. Where Nourmand works, however, location, architecture, and square footage remain at the top of buyers' priorities. "None of my clients are short-selling their homes, so you won't find any fire sales among my listings," says Nourmand. In addition, foreclosures and subprime fallout are non-existent within her housing inventory. Meanwhile, comparably prestigious outlying areas, which were often viewed as alternatives to high-end L.A. neighborhoods, have experienced hard times.

Nourmand maintains that several factors have contributed to strong sales where she works. "If a sluggish economy and high fuel prices are the norm - and that's what the news indicates - then demand for property in desirable neighborhoods near urban centers should remain strong," says Nourmand.