Sales of new homes rose in April to the second highest level since the summer of 2008, while the median price for a new home also hit a record high. Home price increases and a shortage of new and previously owned homes are paving the way for the construction and sale of new residences.

Sales of new single-family homes rose 2.3 percent in April, according to a May 23 Commerce Department report, increasing to a seasonally adjusted annual rate of 454,000 units.

The April pace of new home sales is the second-highest rate since July 2008. The peak since then was in January 2013, when the rate reached 458,000 units sold annually.

Sales in April were 29 percent higher than a year ago, though the rate is still remain low by historical standards. In April, the inventory of new homes on the market rose 3.3 percent to 156,000 units, the highest since October 2011.

At April's sales pace, it would take 4.1 months to clear the houses on the market, unchanged since March. Inventories often rise about this time of year as homeowners prepare to sell their properties during the spring selling season.

A supply of six months is normally considered as a healthy balance between supply and demand. The low months' supply is pushing up new home prices, leading some wary property owners that wish to sell back to the housing market.