Despite a looming shortage in available homes, the rate of existing home sales increased by nearly 10 percent year-over-year in April. Growing demand and rising prices are leading more property owners back to the housing market, which could provide a boost to the larger economy.

The pace of existing home sales set a 41-month high in April, advancing 0.6 percent to an annual rate of 4.97 million units. Resales were 9.7 percent higher than in the same period last year, according to a report from the National Association of Realtors (NAR).

April's existing home sales rate was the highest since November 2009.

The median home sales price also increased 11 percent year-over-year in April, to $192,800, the highest level since August 2008. April was the fifth consecutive month reporting double-digit gains.

The increased inventory represented a 5.2-month supply at April's sales pace, up from 4.7 months in March. The supply remains below the 6.0-month level that economists consider a good balance between supply and demand.

Distressed properties, which include foreclosures and short sales, accounted for only 18 percent of sales in April, the lowest percentage since the Realtors group started monitoring them in October 2008. These properties, which can hamper home prices as they typically sell at deep discounts, made up 21 percent of sales in March.

The median time on the market for homes was 46 days in April, down from 62 days the prior month and another sign that market activity is increasing. April's reading was the lowest since the NAR started monitoring that number in May 2011. Before the market collapsed in 2006, it usually took about 90 days to sell a home. About 44 percent of all homes sold in April had been on the market for less than a month, while only 8 percent had been on the market for a year or longer.