Metro area median existing-home prices in the third quarter generally were down from a year ago, while sales rose in every state from the third quarter of 2010, according to the latest quarterly report  by the National Association of Realtors®.

The median existing single-family home price rose in 39 out of 150 metropolitan statistical areas (MSAs) in the third quarter from a year earlier; 111 areas showed price declines. In the second quarter, 41 metro areas had posted annual price gains.

Lawrence Yun, NAR chief economist, said the market is holding fairly even. “Home sales need to recover first – only then can prices stabilize. Existing-home sales are little changed from the second quarter but are notably higher than a year ago,” he said. “The good news is inventory levels have been trending gradually down.”

Total state existing-home sales, including single-family and condo, slipped 0.1 percent to a seasonally adjusted annual rate of 4.880 million in the third quarter from 4.883 million in the second quarter, but were 17.0 percent higher than the 4.170 million pace during the third quarter of 2010. Every state and the District of Columbia saw sales rise from a year ago, with 45 states posting double-digit gains.

The national median existing single-family home price was $169,500 in the third quarter, down 4.7 percent from $177,800 in the third quarter of 2010. The median is where half sold for more and half sold for less. Distressed homes, typically sold at a discount of about 20 percent, accounted for 30 percent of third quarter sales, compared with 33 percent in the second quarter; they were 34 percent a year earlier.

Existing-Home Sales by Region

Regionally, existing-home sales in the Northeast increased 0.9 percent in the third quarter to a level of 770,000 and are 11.6 percent above the third quarter of 2010. The median existing single-family home price in the Northeast fell 6.5 percent to $236,700 in the third quarter from a year ago.

In the Midwest, existing-home sales rose 2.5 percent in the third quarter to a pace of 1.08 million and are 25.1 percent higher than a year ago. The median existing single-family home price in the Midwest declined 2.2 percent to $142,300 in the third quarter from the same quarter in 2010.

Existing-home sales in the South were unchanged in the third quarter at an annual rate of 1.89 million and are 15.5 percent above the third quarter of 2010. The median existing single-family home price in the South was $153,200 in the third quarter, down 2.2 percent from a year earlier.

Existing-home sales in the West declined 2.6 percent in the third quarter to a level of 1.14 million but are 16.7 percent higher than a year ago. The median existing single-family home price in the West dropped 9.0 percent to $205,700 in the third quarter from the same quarter of 2010. “Western home sales are dominated by cash investors in the lower price ranges,” Yun explained.

For more information view, Third Quarter Metro Area Prices Soften but State Sales Broadly Rise