US house resales rise 2.9% in April

WASHINGTON: Home resales in the US gained in April as foreclosure auctions and improved affordability spurred bargain hunters.

Purchases increased 2.9% to an annual rate of 4.68 million, close to forecasts, from 4.55 million in March, the National Association of Realtors said in Washington. The median price slumped 15% from a year earlier, the second-biggest drop on record, and distressed properties accounted for 45% of all sales.

Record-low mortgage rates, tax credits and falling prices may keep boosting demand and trim the glut of unsold homes. In turn, a pickup in sales will help stem the slump in property values, which is key to shoring up household finances.