The National Association of Realtors reported Monday that sales of previously owned homes rose 7.6 percent last month to a seasonally adjusted annual rate of 5.77 million units up from 5.36 million in March. Year-over-year sales were up 22.8 percent.

The increase in sales sparked a rise in home prices. The median price for a new home increased to $173,100 which is 4 percent above from last year’s level. About a third of homes sold in April were distressed properties.

At current sales pace, inventory represents 8.4-month supply which is up from 8.1-month supply in March.

The boost in home sales this spring is attributed to the federal government’s incentives to first-time buyers which is a tax credit of up to $8,000 and a tax credit of up to $6,500 for existing home owners which ended April 30.

"The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market," said Lawrence Yun, NAR chief economist. "For people who were on the sidelines, there's been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low."

Sales of single-family homes in April were 7.4 percent above March.

Regionally, sales were up except in the West. The Northeast led the gainers which is 21.1 percent up while in there was a 9.9 percent jump in the Midwest. Sales in the South increased 8.6 percent.