For the 18th consecutive month, home sales and prices grew from the previous month, according to the latest RE/MAX Housing Report.

A survey of multiple listings service data in 52 metropolitan areas found that July homes sales were 17% higher than last July and the median price of $189,950 was 11.5% higher.

"Low inventory has been a serious concern this year, but with rising prices and fewer underwater homeowners, we're starting to see more homes come on the market, resulting in inventory levels that are turning around," said Margaret Kelly, CEO of RE/MAX.

Additionally, July was also the fourth month in a row that inventory levels decreased by a smaller amount, with the number of homes for sale just 1.3% lower than the June inventory levels.

Meanwhile, the average days on the market for all homes sold in July fell to 62 days from 65 days in June and from 80 days in July 2012.