Reports are indicating that existing home sales rose from the first quarter in about a third of the nation -- this coming on the tails of eager home buyers responding to discounted home prices.

The National Association of Realtors is reporting that "nearly one-quarter of metropolitan areas showed rising home prices in the second quarter from a year ago, with greatly mixed conditions continuing around the country."

Big jumps were seen in both low and high priced markets.

Lawrence Yun, NAR chief economist, said a clear cause-and-effect response has developed in the housing market. "The biggest home-sales gains over the previous quarter have been in some of the markets with the steepest and fastest price drops," Yun said. Compared with the first quarter, existing-home sales increased 25.8 percent in California, 25.0 percent in Nevada, 20.5 percent in Arizona and 10.1 percent in Florida. "Buyers in these areas are responding to deeply discounted home prices."

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Published: August 19, 2008

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