Home prices down almost everywhere in Q1

WASHINGTON -- Home prices fell in nearly nine out of 10 U.S. cities in the first quarter this year as first-time buyers looking for bargains dominated the market.

The National Association of Realtors said Tuesday that median sale prices of existing homes — half sold for more, half for less — fell in 134 of 152 metropolitan areas compared with the period a year ago. Prices rose in the other 18 cities.

Nationwide, sales of foreclosed and other distressed properties made up about half the market.

Home sales fell in all but six states —Nevada, California, Arizona, Florida, Virginia and Minnesota— where buyers have been able to snap up foreclosures at deep discounts.

Sales more than doubled in Nevada, rose 81% in California and grew 50% in Arizona — signaling that the worst may be over for those distressed states.

Still, the median sale price nationwide was $169,900, down 13.8% from a year ago.

The biggest drop, more than 50%, was in Fort Myers, Fla. Prices fell 40% or more in Saginaw, Mich.; Akron, Ohio; San Francisco; San Jose, Calif; Phoenix; Sarasota, Fla; and Riverside, Calif.

The biggest price gain, more than 21%, was in Cumberland, Md.. The only other double-digit increase was in Davenport, Iowa, which saw the median price climb nearly 14%.

Lawrence Yun, the NAR's chief economist, said the $8,000 tax credit for first-time buyers included in President Obama's economic stimulus package earlier this year should boost sales.

"We expect a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas," Yun said.

Metro area median home prices