Dive Brief:

• Sales of existing homes surged by 6.1% in March to their highest level in 18 months—an encouraging sign for the spring selling season, the National Association of Realtors reported on Wednesday.

• The spike followed a tepid increase in February sales, which economists blamed on insufficient inventory to meet pent-up demand from potential buyers. In March, inventory climbed 5.3%—2% higher than a year ago, the NAR said.

• At the same time, Zillow reported Wednesday, home values increased 3.9%—barely more than the 3.7% growth in the price of monthly rents and the first time in two years that home values grew less than 4% from month to month. In 17 of the largest U.S. metropolitan areas, rents increased more than home prices.

Dive Insight:

The rise in home sales could be one result of the unending upward spiral in the cost of renting an apartment. As the pace of price hikes slows for homes, more tenants are likely to realize that buying is a better deal than renting. But that epiphany will translate into more home sales only for tenants whose rents do not prevent them from saving for down payments.

Leveling home prices could also move owners of existing homes to hurry to market before that growth slows any further.