Sales of new homes increase unexpectedly in April. The increase was the first time in six months but still sales activity nears the lowest level in 17 years.

The Commerce Department reported Tuesday that sales of new homes increased 3.3 percent in April to a seasonally adjusted annual rate of 526,000 units.

The Commerce report’s median price of a new home sold in April increase to $246,100 in April, up 1.5 percent from a year ago. However, analysts were not impressed as the price gain is small price and prices tend to be unstable.

The Commerce report on new home sales showed the April rebound was led by a huge 41.7 percent surge in sales in the Northeast. Sales were up 8.3 percent in the West and 5.8 percent in the Midwest. The only region which saw a decline in sales in April was the South, where sales fell by 2.4 percent.

The inventory of unsold new homes slipped a little to 10.6 months’ supply in April, against March inventory of 11.1. However, the April level was still about double the inventory level that was normal during the housing boom.

That housing boom ended in 2005 and since that time the housing industry has been under pressure with falling sales and prices accompanied by increasing mortgage defaults.

Economists forecast that home prices will remain under pressure until the level of inventories has reached a more manageable level. Many analysts don’t expect to see a reversal of price trends until next year.