Home demand, prices both up in April

By Michelle E. Shaw

The Atlanta Journal-Constitution

Increased home sales led to higher home prices in April across metro Atlanta, local real estate experts say.

The median sale price for existing single-family homes around the metro area rose 7 percent in April from the same month a year earlier, according to a National Association of Realtors report released Monday.

The increase, from $112,500 to $120,800, breaks a string of year-over-year decreases the first three months of the year. April’s median sale price, based on closings, also bested March’s $113,600.

“It’s good old fashioned supply and demand,” said Steve Palm, president of Marietta-based SmartNumbers, a real estate data company. “With higher demand comes higher prices.”

The Realtors’ report also showed a 6 percent increase in the number of existing single-family home sales over April 2009, which Palm said was related to the federal tax credit.

“That’s what helped create the demand,” he said.

The credit expired last month for new contracts but will continue to show up in closings through June.

Higher sales prices could extend through the summer, said Shea Zimmerman, president of the Atlanta Board of Realtors.

“Over the past 24 to 30 months consumers have had to tighten their belts and make adjustments to personal finances,” she said. “But now that those adjustments have been made, they are ready to get out there and see what they can buy and see what the opportunities are in the marketplace.”

Nationally, sales volume for existing single-family homes increased 21 percent over April 2009, while the median price rose 5 percent, according to the report.

Sales of all existing housing types, includingtownhomes and condos, increased 23 percent from a year ago nationwide. Prices rose 4 percent, to $173,100, the report said.

One negative: The number of homes on the market surged by the most in a decade. Increasing supply, combined with mounting foreclosures and expiration of the federal credit, may bring an end to the improvement in home values. On the other hand, lower mortgage rates brought on by concern the European debt crisis will slow global growth may limit the damage.

-- The Associated Press contributed to this report.

COMING TUESDAY: The Standard & Poor’s Case-Shiller Home Price Index for March will be released, providing another gauge of home values nationally and in metro Atlanta.