With distressed homes accounting for a smaller proportion of sales nationwide, median prices for existing homes were up from a year ago in nearly two-thirds of the 155 metro markets tracked by the National Association of Realtors during the second quarter.

Distressed homes accounted for 32 percent of sales, down from 36 percent a year ago, helping push the national median home price up 1.5 percent from a year ago, to $176,900, NAR said.

Sales volume of existing single-family homes and condos increased 9.1 percent from the first quarter, to a seasonally adjusted annual rate of 5.61 million. That’s a 17.3 percent increase from the 4.78 million-unit pace during the second quarter of 2009.

With distressed homes accounting for a smaller proportion of sales nationwide, median prices for existing homes were up from a year ago in nearly two-thirds of the 155 metro markets tracked by the National Association of Realtors during the second quarter.

Distressed homes accounted for 32 percent of sales, down from 36 percent a year ago, helping push the national median home price up 1.5 percent from a year ago, to $176,900, NAR said.

Sales volume of existing single-family homes and condos increased 9.1 percent from the first quarter, to a seasonally adjusted annual rate of 5.61 million. That’s a 17.3 percent increase from the 4.78 million-unit pace during the second quarter of 2009.

NAR is currently forecasting a significant drop in sales of existing single-family homes during the third quarter, however, to an annual rate of 4.55 million units. NAR’s forecast anticipates that sales will rebound to an annual pace of 5.27 million units during the final three months of the year.

Although other economists expect to see some softness in home prices in some markets during the second half of the year, NAR Chief Economist Lawrence Yun today restated his conviction that the correction in home prices appears to have ended in 2009.

"Prices in some areas remain below replacement construction costs, so even with an elevated supply of existing homes on the market we don’t expect any consequential movement in home prices for the foreseeable future," Yun said in a statement. "Very low inventory of newly built homes also will help to support home values."

NAR’s survey of existing-home prices showed increases in 100 of 155 metropolitan statistical areas (MSAs) tracked — including double-digit increases in 14 markets. Among the 53 metros registering price drops, five experienced double-digit declines.

Yun cautioned against reading too much into those numbers, because the median price is influenced by the mix of homes sold, and does not reflect pure appreciation or depreciation.

Sale prices in many markets last year were depressed because a large percentage of distressed homes sold at discount, Yun said. As sales of nondistressed homes make up an increasingly larger part of the mix, the median price in many areas is showing higher values, Yun said.

The top 10 appreciating markets, with second-quarter median home price and year-over-year change, were:

  • Akron, Ohio ($119,700, up 36 percent)
  • San Jose-Sunnyvale-Santa Clara, Calif. ($630,000, 26 percent)
  • San Francisco-Oakland-Fremont, Calif. ($591,200, 25 percent)
  • Riverside-San Bernardino-Ontario, Calif. ($190,200, 17.8 percent)
  • Elmira, N.Y. ($99,200, 16.7 percent)
  • Lansing-East Lansing, Mich. ($92,100, 13.4 percent)
  • San Diego-Carlsbad-San Marcos, Calif. ($392,600, 13.1 percent)
  • Palm Bay-Melbourne-Titusville, Fla. ($117,300, 12.7 percent)
  • Erie, Pa. ($110,200, 12.3 percent)
  • Cape Coral-Fort Myers, Fla. ($94,100, 12 percent)
  • Cleveland-Elyria-Mentor, Ohio ($118,200, 11.5 percent)

 The top 10 declining markets, with second-quarter median home price and year-over-year change, were:

  • Cumberland, Md.-W.Va. ($104,500, -15.4 percent)
  • Tucson, Ariz. ($150,200, -13.7 percent)
  • Ocala, Fla. ($95,900, -13 percent)
  • Beaumont-Port Arthur, Texas ($120,700, -12.9 percent)
  • Boise City-Nampa, Idaho ($140,100, -12.7 percent)
  • Hagerstown-Martinsburg, Md.-W.Va. ($149,800, -9.2 percent)
  • Jacksonville, Fla. ($139,000, -9 percent)
  • Deltona-Daytona Beach-Ormond Beach, Fla. ($117,000, -8 percent)
  • Salem, Ore. ($176,800, -7.5 percent)
  • Gulfport-Biloxi, Miss. ($128,500, -7.4 percent)

 

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×