U.S. home resales rose in April and the supply of properties on the market increased, suggesting the housing market was regaining its footing, reports Reuters.
The National Association of Realtors said existing home sales increased 1.3 per cent to an annual rate of 4.65 million units, marking the second increase in sales in nine months.
Sales are still down 15 per cent from a peak of 5.38 million units hit in July. Compared to April last year, sales were down 6.8 per cent.
Expensive home loans and rising home prices have sidelined first-time buyers from the market. Investors are stepping back.
Though an usually cold winter depressed activity, a dearth of homes for sale also stymied demand. Sales are expected to gradually trend higher for the rest of 2014 as job growth and the overall economy accelerate.
And there is reason to be optimistic. The inventory of unsold homes on the market increased 6.5 per cent from a year-ago and the median home price increased at its slowest pace since March 2012.
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