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Sales of U.S. existing homes rose in April compared with the previous month, economists polled by Reuters forecast.

A poll of 66 economists by Reuters produced a median forecast of 4.66 million sales of existing homes on a seasonally-adjusted, annualized basis, in April. That would be up from 4.57 million sales in March.

Analysts noted that the pending sales index rose 3 percent in March, an encouraging sign for April sales.

Meanwhile, the number of existing homes for sale dropped slightly to 3.74 million in March.

Still, economists noted that foreclosures are still on the rise and that there is a large stock of “shadow” inventory, describing when would-be sellers put their houses back on the market when demand seems to be healthier.

“The trend is flat,” concluded Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, New York.

The National Association of Realtors will release the monthly data at 10 a.m. EDT on Wednesday.

A sampling of forecasts and analysis on the upcoming consumer price data follows:

CARL RICCADONNA, DIRECTOR, SENIOR U.S. ECONOMIST, DEUTSCHE

BANK SECURITIES, NEW YORK:

Forecast: 4.65 million units

“We look for a 1 no fax quick cash.8 percent increase in April over March sales. We have seen some evidence that the housing market is bottoming and that things are turning up just a bit. The pending home sales series has had some gains in recent months. While it’s good news that things are turning up, I wouldn’t look for a big rebound here. Sales are just bouncing along the bottom at this point.”

MICHAEL MORAN, CHIEF ECONOMIST, DAIWA SECURITIES AMERICA, NEW YORK: Forecast: 4.7 million units

“We’re looking for a 2.8 percent increase in existing home sales. If you look at the recent pattern of home sales it seems as though they have formed a bottom. In addition to that, a low interest-rate environment has stirred the interest of some potential buyers. Also, Congress has sweetened tax incentives for first-time home buyers. So I look for at least steady, and possibly improved, home sales. There are negative factors to be sure, such as the weak labor market and continued declines in home prices. Both of those factors could have kept potential buyers sidelined.”

RBS SECURITIES: 

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