Sales of previously owned homes in the U.S. edged up in March but not enough to keep the inventory of unsold homes from hitting a record high as the U.S. housing market continued to show signs of a slowdown.

The U.S. National Association of Realtors said Tuesday that sales of existing homes edged up 0.3% last month to a seasonally adjusted annual rate of 6.92 million units.

The March increase followed a bigger 5.1% jump in February with the two months representing the first advances since five consecutive monthly declines.

The median price of a new home rose to US$218,000 last month, a gain of 7.4% from a year ago. That price increase was far slower than the double-digit gains turned in last year as the housing boom was peaking. The median is a typical market price where half of the homes sold for more and half sold for less.

David Lereah, NAR’s chief economist, said sales are leveling-out. “It’s a good sign to see home sales holding close to the level of a strong rebound in the month before,” he said in a statement. “This is additional evidence that we’re experiencing a soft landing. We may see some minor slowing in home sales as interest rates rise, but the market clearly is stabilizing.” Lereah expects 2006 to be the third strongest year on record for home sales.