Sales are up and prices are declining a bit in the housing market, according to a noted real estate firm.

"The REAL Trends Housing Market Report shows that housing sales increased 6.4 percent in April from the same month a year ago. The year-over-year gain was slightly higher than March 2016 results but slower than January and February of 2016.

` "The Northeast led the way with a 15.6 percent increase.

While the April housing report shows continued growth, the year-over-year increase has slipped into lower gear over the past two months," says Steve Murray, editor of the REAL Trends Housing Market Report.

Home prices were also addressed in the report.

"Price increases continue to soften as the year progresses. The Northeast region had the strongest showing with unit sales up 15.6 percent but also saw the largest decrease in the average price of homes being sold.

"Each region, except the West, showed increased strength indicating that the housing market is heading into the second quarter of 2016 with continued momentum," he adds. The results indicate that the housing market continues to show growth.

"Housing prices declined an average of 0.7 percent from April 2015 indicating that while home sales continue to increase average price increases have slowed substantially.

"The housing market appears to be in good shape despite continued evidence of lower than normal inventory levels. Also, the market has shrugged off other negative news such as the decline in equity markets, low inventories and the slower rate of foreign purchases of homes."

Q: Are pending home sales (contract signing) rising?

A: Yes, pending home sales rose for the third consecutive month in April and reached their highest level in over a decade, according to the National Association of Realtors.

"All major regions saw gains in contract activity last month except for the Midwest, which saw a meager decline," it was noted in a recent NAR news release.

"Lawrence Yun, NAR chief economist, says vast gains in the South and West propelled pending sales in April to their highest level since February 2006.

"The ability to sign a contract on a home is slightly exceeding expectations this spring even with the affordability stresses and inventory squeezes affecting buyers in a number of markets," he said.

Q: Why are home prices rising so rapidly?

A: Unfortunately, there aren't enough homes on the market at this point to satisfy the demand — particularly for less expensive, entry-level homes. This low inventory is having a strong effect on pushing prices up.

Here's a portion of a news release issued by Zillow Real Estate:

"Home values are appreciating faster than experts expected, rising almost 5 percent over the past year, according to the April Zillow Real Estate Market Reports. There are 3.4 percent fewer homes for sale in the U.S. than there were 12 months ago.

` "Zillow forecasted home values would grow 2 percent from April 2015 to April 2016, and outside housing experts said they expect slower growth in coming years. However, the latest data show a different trend with home values currently appreciating at 4.9 percent — almost 3 percentage points faster than was predicted a year ago."

Q: Are mortgage rates finally rising?

A: Mortgage rates are edging up. Freddie Mac released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates up slightly from 2016 lows.

"The 30-year fixed-rate mortgage (FRM) averaged 3.64 percent with an average 0.5 point for the week ending May 26, 2016, up from last week when it averaged 3.58 percent. A year ago at this time, the 30-year FRM averaged 3.87 percent, according to a recent release.

"The 15-year FRM this week averaged 2.89 percent with an average 0.5 point, up from last week when it averaged 2.81 percent. A year ago at this time, the 15-year FRM averaged 3.11 percent."

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. Jim Woodard's email: [email protected].

Photo credit: Erich Ferdinand