Home Prices Increase In April By 10.1%, The Largest Yearly Gain In More Than 6 Years

Includes: REZ
by: Mark J. Perry

The National Association of Realtors (NAR) reported today on existing-home sales in April with the following highlights:

1. Total existing-home sales (single-family homes, townhomes, condominiums and co-ops) increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a downwardly revised 4.47 million in March.

2. April home sales this year of 4.62 million were 10% higher than the 4.20 million units in April 2011.

3. The national median existing-home price jumped 10.1% to $177,400 in April from a year ago; the March price showed an upwardly revised 3.1% gain from a year earlier.

“This is the first time we’ve had back-to-back price increases from a year earlier since June and July of 2010 when the gains were less than one percent,” NAR chief economist Lawrence Yun said. “For the year we’re looking for a modest overall price gain of 1.0 to 2.0 percent, with stronger improvement in 2013.”

4. The 10.1% median price increase in April was the biggest year-to-year gain since January 2006 and reflected a seasonal mix in demand toward bigger houses and fewer distressed sales.

Bottom Line: The housing recovery is underway.