The April Existing Home sales report saw sales climb to a three-month high, coming in at an annual rate of 5.45 million, up from 5.36 million in March.  The headline number is encouraging, but the internals of the report are even more promising.

First time buyers edged up to 32% of total, and while a long ways from the 40% needed for a “healthy” market, it could be the start of something promising.

Distressed (foreclosure and short sales) sales continue to drift lower and days on the market declined a whopping 8%.

Even more promising is the improvement in all price ranges, except $100,000 and under.

Prices

• Overall $232,500 from $218,700
• Single Family $233,700
• Condos $223,300

I think prices have come on too fast, but supply/inventory remains low, and there still aren’t enough workers to meet demand.

I don’t think this housing report gives the Fed more fodder, but it is a solid economic report that hints of possibilities.  The problem is we’ve had these hints several times during the so-called recovery, and then they fade away.

I would like to see if this rally holds up, but I am not going to bet on it.  Have a great weekend.