U.S. existing-home sales went up 2.3 percent in July, with prices continuing to rise, a positive sign for the improved housing market, a leading industry group said Wednesday.

Existing home sales, which tally completed transactions for single-family houses, town houses and condominiums, rose to a seasonally adjusted annual rate of 4.47 million units in July from 4.37 million units in June. The July level was 10.4 percent higher than the 4.05 million units registered in July 2011, the National Association of Realtors (NAR) said in a report.

Lawrence Yun, NAR chief economist, believed the housing affordability conditions are very good.

"Mortgage interest rates have been at record lows this year while rents have been rising at faster rate. Combined, these factors are helping to unleash a pent-up demand," he said.

The median existing home price for all housing types climbed 9. 4 percent from a year ago to 187,300 U.S. dollars in July, the fifth consecutive month of a year-on-year increase, according to the report.

Distressed homes -- foreclosures and short sales sold at deep discounts -- accounted for 24 percent of July sales, down from 25 percent in June and 29 percent in July 2011.

The spike in the median price is largely resultant from fewer sales in the lower price ranges, said Yun, who believed all of the home price measures now are showing positive movement, which helps build confidence in the market.