The sales rate of existing homes increased by 1.3 percent in April, rising for the first time this year but remaining nearly seven percent behind April 2013 levels. Gains in the West and South offset a modest decline in the Midwest, and the Northeast, which has struggled all year to recover from a harsh winter,
was unchanged.

The pace of existing home sales improved in April for the first time this year, rising 1.3 percent from a seasonally adjusted annual rate of 4.59 million-units in March to a 4.65 million units in April, according to a May 22 report from the National Association of Realtors. The sales rate was 6.8 percent below the 4.99 million-unit level in April 2013.

"Some growth was inevitable after sub-par housing activity in the first quarter, but improved inventory is expanding choices and sales should generally trend upward from this point," said NAR chief economist Lawrence Yun. "Annual home sales, however, due to a sluggish first quarter, will likely be lower than last year."

Housing inventory also increased, as total inventory at the end of April jumped 16.8 percent to 2.29 million existing homes available for sale, which represents a 5.9-month supply at the current sales pace, up from 5.1 months in March. Unsold inventory is 6.5 percent higher than a year ago, when there was a 5.2-month supply.

"We'll continue to see a balancing act between housing inventory and price growth, which remains stronger than normal simply because there have not been enough sellers in many areas," Yun said. "More inventory and increased new-home construction will help to foster healthy market conditions."

Home price growth, which has squeezed affordability for many homebuyers, moderated in April. The median existing-home price for all housing types in April was $201,700, 5.2 percent above April 2013; in the first quarter, the median price was 8.6 percent higher than the prior year. "Current price data suggests a trend of slower growth, which bodes well for preserving favorable affordability conditions in much of the country," Yun said.

Properties sold faster for the fourth straight month in April, reflecting the lag in available inventory. The median time on market for all homes was down from 55 days in March to 48 days in April; homes were on the market for 43 days in April 2013.

Single-family home sales inched up 0.5 percent to a seasonally adjusted annual rate of 4.06 million units in April, up from 4.04 million in March. Sales, however, were 7.7 percent below the 4.40 million pace reached a year ago. The median existing single-family home price was $201,100 in April, up 4.7 percent from April 2013. Existing condominium and co-op sales rose 7.3 percent to an annual rate of 590,000 units in April from 550,000 units in March, but are unchanged from April 2013. The median existing condo price was $205,500 in April, which is 8.3 percent higher than a year ago.

Regionally, existing home sales in the Northeast were unchanged at an annual rate of 600,000 in April, but are 6.3 percent below April 2013. The median price in the Northeast was $244,000, 0.4 percent less than a year ago. Sales in the Midwest fell 1.0 percent in April to a pace of 1.03 million, and were down 9.6 percent year-over-year. The median price in the Midwest was $157,200, which is 5.8 percent above April 2013.

In the South, existing home sales increased 1.0 percent to an annual level of 1.94 million in April, but are 3.5 percent below April 2013. The median price in the South was $173,200, up 3.2 percent from a year ago. Existing home sales in the West rose 4.9 percent to a pace of 1.08 million in April, but are 10.0 percent below a year ago. The median price in the West was $291,200, which is 9.7 percent above April 2013.