Existing-home sales in the United States fell a second month in a row during April, while inventories surged and prices dropped sharply from a year earlier.

Home resales fell to a 4.89 million annual rate, a 1% decrease from March’s revised 4.94 million annual pace, the National Association of Realtors (NAR) said today. Originally, the NAR estimated sales fell 2% to 4.93 million in March.

The median home price was US$202,300 in April, down 8% from $219,900 in April 2007. The median price in March this year was US$200,100. High inventories have exerted downward pressure on prices. The decline has kept would-be buyers from signing off on property as they wait for still-lower price tags.

U.S. lenders have tightened their standards on home loans, contributing to the credit crunch that is restraining the U.S. economy.

But the NAR said there has been easing in mortgage restrictions. NAR economist Lawrence Yun advised buyers to take another look at the market because of the changes in lending.

The April resales level of 4.89 million reported by NAR was slightly above Wall Street expectations of a 4.86 million sales rate for previously owned homes.

Inventories of homes increased 10.5% at the end of April to 4.55 million available for sale, which represented a 11.2-month supply at the current sales pace. There was a 10.0-month supply at the end of March, revised from a previously estimated 9.9 months.

Regionally, existing-home sales in April fell 6.0% in the Midwest and 4.4% in the Northeast. Demand rose 6.4% in the West. Sales were unchanged in the South.