Silver Lining: Home sales, prices fell in March but low mortgage rates and tax credit drive interest

Source: Winston-Salem Journal ; The Associated Press

MIAMI - Sales of existing-homes in the South fell 8 percent in March, compared with the year before, while prices also continued to drop as sellers competed with distressed property sales and lured first-time home buyers, the National Association of Realtors said yesterday.

The median sales price of an existing home in the South sank 12 percent to $146,900, the Realtors group said, a sign that foreclosures still are dragging down prices as banks price the homes cheaply to reduce inventory.

On a national, non-seasonally adjusted basis, existing-home sales dropped 4 percent from March of last year, while the median sales price slid 12 percent to $175,200, the Realtors reported.

However, there were positive signs in the Southern housing market as low mortgage rates and a new $8,000 tax credit for first-time buyers spurred buyer interest. The drop in March sales on a year-over-year basis was half the rate of decline of 16 percent seen in January and February. Read More...