[IMGCAP(1)]

IRVINE, CA—The median home price rose during November from a year ago by 15% to $190,000, a figure that was flat compared to the previous month, according to a report from RealtyTrac. Also, the firm reports that the median sales price of distressed homes—those in the foreclosure process or bank owned—reached a high of $128,625, the highest since December 2009, yet still 35% below the median sales price of non-distressed properties.

Distressed home prices increased at a faster pace than non-distressed properties, up 18% from a year ago, while non-distressed home prices were up 14% during the same time period, according to RealtyTrac. Daren Blomquist, VP of RealtyTrac, says, “As the price of distressed properties reaches a new high, the pool of investor activity that has been fueling the housing recovery may dry up. However, 20 states still saw annual decreases in distressed-property prices, so we will continue to see a fragmented recovery as investors move from once-hot markets such as Phoenix, Atlanta and many California markets and into markets such as Charlotte, NC; Columbus, OH; Dallas; and Oklahoma City.”

Blomquist adds that thankfully, the increase in first-time homebuyers in November (31%, according to NAR) helped push home prices up slightly with home appreciation on average 6% among all metro areas with a population of 500,000 or more. “We saw strong price appreciation in Rust Belt cities like Detroit, Cleveland and Chicago, contrasted with single-digit price appreciation in many coastal California markets, Phoenix, Las Vegas and the District of Columbia.”

As GlobeSt.com reported earlier this week, Blomquist told us exclusively that the biggest change to occur in the residential market this year was “the transition from a rebounding market to a reality-based market, which happened in the second half of the year, as evidenced by two trends:

• Annual home-price appreciation has slowed to single digits in most markets. Our data shows year-over-year home-price appreciation was an average of 6% in November among all metro areas with a population of 500,000 or more (102 total). That is down from an average 10% in November 2013.
• Cash sales in the third quarter dropped back close to historic norm of 33% and the lowest level since the fourth quarter of 2010.

The November median sales price, which included both distressed sales of homes in some stage of foreclosure and non-distressed sales—was up 35% from a trough of $141,000 in March 2012, but still 20% below the previous peak of $237,537 in August 2006.

[IMGCAP(2)]

[IMGCAP(3)]