US existing home sales dip in April

Sales of second-hand homes in the US dipped by slightly more than expected last month.

According to the National Association of Realtors, existing home sales shrank at a month-on-month pace of 1.9% in April to reach 4.14m.

Economists had pencilled in a reading of 4.21m.

Sales also declined by 1.9% in comparison with their year earlier level.

The median price of an existing home on the other hand was ahead by 5.7% on a year ago to $407,600.

The number of unsold homes meanwhile jumped by 9% month-on-month to reach 1.21m or the equivalent of 3.5 months' worth of sales.

That compared to 3.2 months' worth of existing home sales in March.

"Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market," said NAR Chief Economist Lawrence Yun.

"Home prices reaching a record high for the month of April is very good news for homeowners.

"However, the pace of price increases should taper off since more housing inventory is becoming available."