The latest report from the National Association of Realtors shows that the sale of existing-homes was on the rise in March. This figure was up 3.7 percent from the month prior, but was still 6.3 percent below the pace seen in March 2010.

Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”

Tight lending has made it difficult for many would-be buyers to enter the market. “Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago – before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.

Regionally, the numbers are varied. The area with the most ground to cover to break even with year ago levels is the Midwest. This region is seeing an existing-home sales pace 13.1 percent below March 2010. The median price is also down from last year by 7.1 percent.

The West was the only region not to see a month over month gain and fall below February levels. It is now experiencing an annual existing-home sales pace of 1.25 million. The median price is $192,100, or 11.2 percent lower than March 2010.

The Northeast has the highest median price, at $232,900, though this number is 3.0 percent below year ago levels.

The South appears to be fairing better when it comes to homes holding value. "Existing-home sales rose 8.2 percent to an annual level of 1.99 million in March but are 1.0 percent below March 2010. The median price in the South was $138,200, down 6.6 percent from a year ago."

According to a parallel NAR practitioner survey, "First-time buyers purchased 33 percent of homes in March, compared with 34 percent of homes in February; they were 44 percent in March 2010." Last year's figure was most likely elevated thanks to the first-time home buyer tax credit.

The NAR also reports that all-cash sales were at a record market share of 35 percent in March, up from 33 percent in February; they were 27 percent in March 2010.

And no news to most, distressed property sales made up 40 percent of the market, up from last year's 35 percent, and up even further from the normal average of 20 percent.

Published: April 22, 2011

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Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide.