Home prices drop record amount in 1Q

Home prices in the U.S.
dropped the most on record during the first quarter, according to the
National Association of Realtors. Prices dropped in 134 of 152
metropolitan areas, with the steepest declines in Florida and
California. The median price fell 14 percent to $169,000. Distressed sales increased transactions in 17 states compared to the
prior quarter, and those homes sold for about 20 percent less than
others. “There are a lot of forces pushing the market in different
directions,” said Brian Bethune, economist at IHS Global Insight.
“We’ve seen huge improvements in affordability, not only in prices but
also in terms of mortgage rates below 5 percent, but what’s pushing
down those prices is foreclosures and job losses.”