The typical existing home on the market in April found a buyer in less than a month, the fastest turnaround time since the National Association of Realtors began tracking this data. But the pace of existing home sales slowed down as buyers continued to face the hurdles of higher prices, increased mortgage rates, and a diminishing number of listings.

Existing home sales stood at a seasonally adjusted annual rate of 5.57 million, falling 2.3 percent from March's downwardly revised figure of 5.7 million. However, April's level of existing home sales was 1.6 percent higher than the previous year, as well as the fourth fastest pace in the past 12 months.

"Last month's dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market," said Yun. "Demand is easily outstripping supply in most of the country and it's stymieing many prospective buyers from finding a home to purchase."

Properties sold in April had been on the market for a median of 29 days, five days faster than the previous month and 10 days faster than the previous year. This median listing period beat out the May 2016 figure of 32 days to be the fastest turnover since the National Association of Realtors began tracking the information in May 2011. A record high of 52 percent of homes sold during the month spent less than a month on the market.

Median home price growth continued for its 62nd straight year. The typical existing home sold in April went for $244,800, a year-over-year increase of 6 percent.

There were a total of 1.93 million existing homes for sale during the month, up 7.2 percent from the previous month. However, this inventory was down 9 percent from April 2016, making it the 23rd consecutive month where housing supply has fallen from the previous year.

"Realtors continue to voice the frustration their clients are experiencing because of the insufficient number of homes for sale," said Yun. "Homes in the lower and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher."

Despite such challenges, first-time made up a larger share of April's buyers. Thirty-four percent of existing homes sold during the month went to people purchasing their first home, up from 32 percent in both March and April 2016. This share was the highest since September, but down from an annual share of 35 percent in 2016.

Buyers found some comfort in mortgage rates, which fell for the first time in six months. According to Freddie Mac, the average rate for a 30-year fixed rate conventional mortgage in April was 4.05 percent, down from 4.2 percent in March. However, this rate was still up from the average of 3.65 percent for all of 2016.

"Mortgage rates have been stuck in a holding pattern in recent months, which is a relief for spring homebuyers," said Yun. "With price growth showing little sign of slowing, prospective first-time buyers will be the most sensitive to any sudden uptick in rates in the months ahead."

Fifteen percent of existing home sales went to individual investors, the same share as in March and up 2 percentage points from the previous year. Fifty-seven percent of investors purchased a property without financing. All-cash transactions accounted for 21 percent of sales, down from 23 percent in March and 24 percent in April 2016.

Five percent of existing home sales were distressed properties, including 3 percent that were foreclosures and 2 percent that were short sales. The share of distressed sales was down from 6 percent in March and 7 percent in April 2016.

Foreclosures sold a median of 46 days after they were listed and had an average discount of 18 percent below market value. Short sales typically spent 88 days on the market and sold at a 12 percent discount on average.

Single-family home sales accounted for most transactions, with a seasonally adjusted rate of 4.95 million. This was down 2.4 percent from the previous month, but up 1.6 percent from the previous year. Single-family homes sold for a median of $246,100, a year-over-year increase of 6.1 percent.

Condominium and co-op sales declined 1.6 percent to a seasonally adjusted rate of 620,000 units, but this pace was also up 1.6 percent from April 2016. The median price for this type of home was $234,600, an increase of 5.6 percent from the previous year.

The pace of existing home sales in the Northeast was down 2.7 percent from both the previous month and previous year to stand at a seasonally adjusted annual pace of 730,000. The median sales price of $267,700 in this region marked a year-over-year increase of 1.6 percent.

Homes in the South had the strongest price appreciation, with median prices increasing 7.9 percent to $217,700. The annual rate of 2.3 million sales was down 5 percent from March, but still 3.6 percent higher than in April 2016.

The Midwest also showed major price gains and was the only region with an increase in existing home sales from March. The annual rate of 1.36 million sales was up 3.8 percent from the previous month, but down 0.7 percent from April 2016. The median home price in this region was $194,500, a year-over-year increase of 7.8 percent.

In the West, the annual rate of 1.18 million was down 3.3 percent from the previous month but up 3.5 percent from the previous year. The median home price climbed 6.8 percent to $358,600.