Median Home Prices Rise in More Areas

Washington, DC, Aug. 10, 2012 -- Median existing single-family home prices are rising in more metropolitan areas, but a lack of inventory – notably in lower price ranges – is limiting buyer choices in an increasing number of markets around the country, according to the latest quarterly report by the National Association of Realtors.

The median existing single-family home price rose in 110 out of 147 metropolitan statistical areas, compared to a year ago, NAR said.

In the first quarter of 2012 there were 74 areas showing price gains from a year earlier, while in the second quarter of 2011 only 41 metros were up.

Lawrence Yun, NAR chief economist, said home prices are set to rise in even more markets during upcoming quarters.

“It’s most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners.  Inventory has been trending down and home builders are still under-producing in relation to growing demand,” he said.

“Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight.”

The national median existing single-family home price was $181,500 in the second quarter, up 7.3% from $169,100 in the second quarter of 2011. 

Distressed homes – foreclosures and short sales which sold at deep discounts – accounted for 26% of second quarter sales, down from 33% a year ago.

At the end of the second quarter there were 2.39 million existing homes available for sale, which is 24.4% below the close of the second quarter of 2011.