The National Association of Realtors reports that first quarter national median home prices in metropolitan areas showed the best year-over-year gains in over seven years.
The first quarter's median single-family home price is $176,600, up 11.3 percent from 2012. This is the greatest year-over-year increase since the fourth quarter of 2005.
In the first quarter, existing home prices rose in 133 of the 150 metropolitan areas surveyed compared with the same period in 2012. In 2012, only 74 metros were showing improvement.
Since the first quarter of 2012, there has been a 16.8 percent drop in the number of homes available for sale, down to 1.93 million. This drop in supply is forcing prices up, creating a seller's market. However, some of the elevated median prices reflect a shrinking market share of lower priced homes and greater activity in upper priced transactions.
