The rising unemployment rate is mentioned only once in this article. But more people out of work will reduce demand, pushing down prices even as the foreclosure market levels off later this year.
Median home prices fell nationwide in 1QWASHINGTON (AP) -- Home prices fell in nearly nine out of every 10 U.S. cities in the first quarter of this year as first-time buyers looking for bargains dominated the market.
The National Association of Realtors said Tuesday that median sales prices of existing homes declined in 134 out of 152 metropolitan areas compared with the same period a year ago. Prices rose in the other 18 cities.
Nationwide, sales of foreclosures and other distressed properties made up about half of the market. Overall, sales dipped 3.2 percent from the year-ago period.
"I think we're near a bottom, but we're not there yet," said David Resler, chief economist at Nomura Securities. While prices could hit bottom as soon as this summer, he said, they are likely to remain stable and start edging higher slowly.
But the nascent signs of recovery in the housing market could be short-lived if employers continue to lay off workers in bulk.
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