House Prices Rise in Areas Hit by Foreclosures

Washington, DC, May 12, 2010--House prices  rose in 91 U.S. cities in the first quarter, especially in states hit hard by foreclosures, according to the National Association of Realtors.

For example, the median price of a single-family home sold in Saginaw, Michigan, doubled to $60,800, and prices in Akron, Ohio, climbed 90 percent to $95,300.

Cities that led the nation in foreclosures a year earlier had the biggest price increases, helped by a federal tax credit according to Lawrence Yun, chief economist for the Realtors’ group.

The median price of an existing U.S. home peaked at $230,300 in July of 2006 and hit a low of $164,600 in February, according to NAR data. The drop was 13 percent in 2009.

This year, prices may increase 2.5 percent as the economy improves, according to NAR's forecast.