Home sales increase in all states

The latest quarterly report from the National Association of Realtors found sales of existing home increased in every state in the third quarter of 2011 compared with the third quarter of 2010, as median existing-home prices were generally down in the same time period.

Total state existing-home sales increased 17 percent in the third quarter compared with the same time in 2010, at an annual rate of 4.88 million compared with 4.17 million a year ago. Each state experienced increases in sales, with 45 states posting double-digit gains.

The median existing single-family home price jumped in 39 of 150 metropolitan areas in the third quarter compared with 2010, and 111 areas showed price decreases. In the second quarter of 2011, 41 metro areas reported price increases compared with the second quarter of 2010.

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

Many housing experts, however, do not foresee home prices stabilizing until mid-2012 or even 2013. According to the Fiserv Case-Shiller Home price Insights, single-family home prices dropped 5.9 percent in the second quarter of 2011 compared with the same time in 2010, and the index expects prices to fall another 3.6 percent by the second quarter of 2012 and then increase 2.4 percent by the second quarter of 2013.

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