NAR: Resale Price Gains Strong in 4Q

The median prices of existing homes increased at "well above historic norms" during the fourth quarter in most metropolitan areas, according to the National Association of Realtors.The association's metro area home price report for the fourth quarter found 39 of the 120 areas surveyed with double-digit annual increases in median resale prices, and only 10 with "generally small" price declines. "There was an average 4.7-month supply of homes on the market during the fourth quarter, well below the 6.0-month level considered to be a generally balanced market between buyers and sellers," said NAR chief economist David Lereah. "The tight supply of available homes has persisted for several years now. The result is that home prices in the fourth quarter rose almost three times faster than historic norms." The top rates of year-over-year increases in median resale prices were in Sacramento, Calif., up 26.7% to $224,200; San Diego, up 26.6% to $379,300; and Providence, R.I., up 24.6% to $206,100. The NAR can be found online at http://realtor.org.