Tuesday, May 12, 2009

Home prices fell in nearly nine out of every 10 U.S. cities in the first quarter. First-time buyers looking for bargains were dominating the market.

The National Association of Realtors says 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% from the year-ago period.

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

The biggest price gain, of more than 21%, was in the Cumberland, Md., market.