The fact that median home prices rose in 91 out of the 152 largest cities in the US does not mean much, unless the fact is in light of the market’s two-year plunge.
The National Association of Realtors reports that:
In the first quarter, 91 out of 152 metropolitan statistical areas showed higher median existing single-family home prices in comparison with the first quarter of 2009, including 29 with double-digit increases; three were unchanged and 58 metros had price declines.
The national median existing single-family price was fairly flat at $166,100, down 0.7 percent from the first quarter 2009 price of $167,300. The median is where half sold for more and half sold for less. Distressed homes, which typically are discounted by 15 percent relative to traditional homes, accounted for 36 percent of first quarter sales.
Essentially, the sales rate is increasing, but buyers are paying an awful price to sell their homes
The net of all the data that comes from the government and private sources is that whatever recovery is underway is spotty and may not hold. If the tax credits from the government go away or mortgage rates rise any progress would reverse.
Douglas A. McIntyre
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