The backlog of unsold US homes surged to a record level in April and sales continued to decline as the dark clouds hanging over the residential property market showed few signs of lifting, a report revealed on Friday.

Existing home sales fell 1 per cent in April to a seasonally adjusted 4.89m annual rate, the National Association of Realtors said. The figure was a fraction less severe than economists had expected, but matched a record low set in January. Sales of previously owned homes were 17.5 per cent below the same period a year ago.