Prices of single-family homes fell almost 3% in the second quarter compared to the same period last year with distressed transactions accounting for 33% of existing home sales, according to new figures compiled by the National Association of Realtors.
Prices rose in 40 of the 150 metropolitan statistical areas tracked by NAR. The national median price of a single-family house sold in the second quarter was $176,800. In the condominium and cooperative market, the national median price fell 3.8% below the price in the second quarter of 2010.
Sales of single-family houses and condos fell 5.4% in 2Q compared to 1Q.
NAR chief economist Lawrence Yun noted that prices have been moving up and down in a narrow range in many markets, "which shows a stabilizing trend."
Realtors are concerned, however, that tight lending standards continue to hinder a recovery in the housing market.
Fiserv chief economist David Stiff does not expect home values to stabilize until the end of 2012. He believes economic weakness and uncertainty is weighing on the markets and consumers. "Households will not become more optimistic about housing markets until they are convinced that the job market is improving and that politicians will not allow debt problems to become new economic catastrophes," Stiff said.
