From Wells Fargo Economics Group

Following three consecutive months of declines, existing home sales rose 1.3 percent in April to a 4.65 million-unit rate. Inventories reached their highest level since August 2012. Condo sales jumped 7.3 percent.

Inventories Are on the Move

Marking a good start to the Spring home-buying season, the rebound in April suggests weather did play some role in the slower pace of sales since January. Sellers are also feeling a little more upbeat about the housing market, with listed inventories jumping 16.8 percent in April, resulting in 2.29 million homes available for sale.

Still No Sight of the First-Time Home Buyer

Much of the focus in this sluggish housing recovery has been on the first-time home buyer who continues to struggle with tight credit standards and stringent down payment requirements. Sales activity for first-time home buyers only accounted for 29 percent of overall sales activity in April and is still below the long-run trend. The share of all-cash transactions and investor activity is also largely unchanged on the month.