Home prices stabilized in more than half of the metropolitan areas across the country in the first quarter, while improving sales and declining inventory created more-balanced conditions market conditions, according to a new report.
The latest quarterly report by the National Association of Realtors showed home prices rose in 74 out of 146 metropolitan statistical areas. The report showed most buyers now have the necessary income to purchase a home, assuming their credit ratings are favorable.
“Home prices are more volatile than normal because of sudden upswings in buyer activity in some localities, and also are affected by the prevalence of distressed sales,” said Lawrence Yun, the association’s chief economist. “Given the steadily dwindling supply of inventory and notably higher listing prices that are being negotiated today, prices are expected to show further improvements in the near future.”
Regional home facts:
Northwest existing-home sales jumped 8.6 percent in the first quarter and are 6.6 percent higher than in the first quarter of 2011. Median existing single-family home price declined 3.2 percent to $226,300 in the first quarter from a year ago.
Midwest existing-home sales rose 5.5 percent in the first quarter and are 11.7 percent higher than a year ago. Median existing single-family home price increased 0.8 percent to $125,300 in the first quarter from the same quarter in 2011.
Southern existing-home sales increased 2.1 percent in the first quarter and are 4.1 percent above the first quarter in 2011. Median existing single-family home price rose 1.2 percent to $143,600 in the first quarter from a year earlier.
Western existing-home sales rose 5.9 percent in the first quarter and are 1.4 percent higher than a year ago. Median existing single-family home price slipped 0.9 percent to $196,200 in the first quarter from the first quarter of 2011.
What do you think? What does this mean for your region? Let us know: