Existing-home sales rose 0.6 percent in April to an annual sales rate of 4.97 million, the highest level since November 2009, the National Association of Realtors reported Wednesday. Economists had expected a 1.6 percent increase to 5.0 million from March’s original report of 4.92 million sales. March sales were adjusted upward to 4.94 million.

The median price of an existing single-family home jumped $8,900 in the month to $192,800, the highest since August 2008.

The inventory of homes for sale rose to 2.17 million—its highest level since last September. The supply of homes for sale rose to 5.2 months, the highest since October. The inventory has been a persistent concern to realtors who say the low supply of homes for sale has reduced the number of transactions.

But inventory has edged up consistent with the increase in the median price of an existing-home, which has increased in five of the last six months. The number and months supply of home for sale has gone up for three straight months.

The monthly NAR report—which tracks closings—increased despite a drop in the NAR’s pending home sales index (PHSI) two months ago. The PHSI tracks contracts for sale. The increase in closings was consistent though with the improvement in builder confidence reported last week by the National Association of Home Builders, which said its Housing Market Index increased in May for the first time this year. Homebuilders reported an increase in buyer traffic meaning more people shopping for homes.

According to the NAR data, April home sales were up 9.7 percent over sales a year earlier, a slightly slower improvement than the 10.8 percent year-over-year gain reported for March. The median price also showed a modestly slower year-over-year gain, 11.0 percent for April, than recorded for March, 11.6 percent.

After falling to a cyclical low in August 2010, existing home sales had been improving steadily-helped by the federal homebuyer tax credit program until seeming to plateau since last November.

Monthly sales since November have averaged 4,943,000, up from 4,657,000 in the preceding six months and 4,467,000 from November 2011 through April 2012.

Although the sales pace fell short of forecasts, NAR Chief Economist Lawrence Yun described the housing results as “robust” and said the “market recovery is occurring in spite of tight access to credit and limited inventory.”

Distressed homes—foreclosures and short sales—accounted for 18 percent of April sales, down from 21 percent in March and 28 percent in April 2012, the NAR said. Eleven percent of April sales were foreclosures, and 7 percent were short sales. Foreclosures sold for an average discount of 16 percent below market value in April, while short sales were discounted 14 percent compared with March when foreclosures sold for an average discount of 15 percent while short sales were discounted 13 percent.

The smaller discounts for foreclosures and short sales in the last month suggests some market firming.

The median time on market for all homes was 46 days in April, down sharply from 62 days in March, and is 45 percent faster than the 83 days on market in April 2012, according to NAR. Forty-four percent of all homes sold in April were on the market for less than a month, while only 8 percent were on the market for a year or longer.

First-time buyers, the NAR said, accounted for 29 percent of purchases in April, compared with 30 percent in March and 35 percent in April 2012.

All-cash sales were at 32 percent of transactions in April, up from 30 percent in March; they were 29 percent in April 2012.

Regionally, existing-home sales in the Northeast rose 1.6 percent to an annual rate of 640,000 in April and are 4.9 percent above April 2012. The median price in the Northeast was $245,100, up 3.4 percent from March and 5.1 percent from a year ago.

Existing-home sales in the Midwest fell 3.4 percent in April to a pace of 1.12 million but are 9.8 percent above a year ago. The median price in the Midwest was $149,300, up 5.7 percent from March and 6.7 percent from April 2012.

In the South, existing-home sales rose 2.0 percent to an annual level of 2.01 million in April and are 14.9 percent above April 2012. The median price in the South was $168,700, the highest level since August 2008, and 4.1 percent higher than March and 10.6 percent above a year ago.

Existing-home sales in the West increased 1.7 percent to a pace of 1.20 million in April and are 4.3 percent above a year ago. The median price of an existing home in the West rose to $263,600 in April, up 2.6 percent from March and 17.5 percent from April 2012.

SOURCE: DCNews

Several economists have recently revised their predictions on housing values to reflect a stronger-than-expected real estate rebound, and some have even doubled their original forecasts over the rise in home prices. For example, economists at Bank of America revised their home price forecast from 4.7 percent this year to 8 percent.

Capital Economics’ Economist Paul Diggle upwardly revised his home price forecast too, from a 5 percent projection to an 8 percent rise in home prices this year.

“Prices of both new and existing homes are picking up, the latter by over 10 percent year-on- year,” Diggle notes. “Indeed, after a couple of years during which new house prices outperformed, primarily owing to builders constructing more homes for the higher-end market, we now expect existing house prices to close the gap. As more consumers are able to access mortgage credit, home builders should widen their offering, while continued investment demand will bid up existing house prices.”

Consumers are growing more optimistic about home prices too. A recent report of consumers from mortgage giant Fannie Mae showed that 48 percent believe home prices will rise over the next year.

Ivy Zelman, an independent real estate analyst, told CNBC last week that “we’re in a nirvana for housing. I’m the most bullish I’ve ever been.” Zelman said that home prices could rise for another four to six years.

Home buyers may not get as great of a deal on a foreclosure as they once did, according to Paul Diggle from Capital Economics in a new report.

Foreclosure starts are falling and the inventory of foreclosures has been decreasing, which has caused the discount on foreclosures to lessen.

The discount on foreclosed homes compared to other homes has fallen to a 12 percent average, according to Diggle. That was about the same percentage prior to the housing crash, he says. Last year the foreclosure discount averaged about 30 percent.

“Ultra-low mortgage interest rates and steady, if not spectacular, job creation could mean that the delinquency rate and foreclosure start rate are falling quickly,” Diggle writes.