Nearly
60 percent of metropolitan statistical areas (MSAs) surveyed by the National
Association of Realtors® (NAR) showed an increase in housing prices during the
first quarter of 2010 when compared to levels one year ago. Even more have seen what NAR called
"healthy gains" in home sales.
The NAR survey
covered 152 MSAs, 91 of which showed higher median single-family home prices
during the first quarter of 2010 than during the same period in 2009. 29 of the increases were in the double digits. Prices continued to decline in 58 MSAs and were
unchanged in three. In the fourth
quarter of 2009, 67 areas showed increases while 123 areas saw prices decline.
Nationally
the median price of an existing single-family home was $166,000, down 0.7
percent from a year earlier when the price was $167,300. Distressed homes which, NAR says are
typically discounted by 15 percent in comparison to traditional sales,
accounted for 36 percent of the sales in the January-March period.
Lawrence Yun, NAR
chief economist, said of the national figure, "This flattening in home prices
is something we've been seeing in all of the home price measures lately and
quite clearly in this metro area price report. The tax credit has been very
effective in drawing down excess inventory, with about one million additional
sales resulting directly from the stimulus."
As many economists had predicted, the spike in home sales in the fourth
quarter of 2009, which was driven largely by the first-time home buyer's tax
credit, did not continue into the new year. Total existing-home sales,
including single-family and condo sales, were at a seasonally adjusted annual
rate of 5.14 million in the first quarter, down 14.0 percent from the
fourth quarter figure of 5.97 million. First quarter sales were still 11.4
percent higher than the 4.61 million-units sold one year earlier.
"Year-ago
comparisons are more meaningful in this report due to sales swings from the tax
credit," Yun said.
NAR President Vicki Cox
Golder, said buyers are looking at a home purchase in a new light.
"Buyer confidence is back, and home buyers have long-term views. The typical
buyer plans to stay in their home for 10 years, so we've put the flipping
mentality behind us and most people see housing for what it is - shelter that
provides social benefits and is also a good long-term investment,"
Golder said even with some recent easing of mortgage credit, the housing
market continues to be constrained by mortgage issues.
She said that one-third
of NAR members responding to other surveys say that obtaining a mortgage has
been a limiting factor for their customers, 11 percent report they have had a
sales contract canceled and another 16 percent have had to renegotiate a
contract because of a low appraisal.