NEW YORK (CNNMoney.com) — The real estate roller coaster ride continued last year as the median price of U.S. single-family home plunged 11.9% to $173,200

The housing situation had been looking up earlier in the year, with prices gaining ground in the first nine months. But between October and December prices fell 2.9% compared to the previous three months, according to the National Association of Realtors.

Compared to the fourth quarter of 2008, median home prices fell 4.1%.

“This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” said Lawrence Yun, NAR’s chief economist. “Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.

Another sign of improvement is the increase in the number of homes sold. More than 6 million homes changed hands between October and December — a 27.2% increase from the same time period in 2008.

“The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” said Yun. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

Sales volume increased in all but two states; 32 states recorded double-digit homes sales gains. Foreclosures sales continued to drive these increases; distressed properties, which includes foreclosures and short sales, accounted for 32% of sales during the quarter.

More than a third of the 151 metropolitan areas covered in the report recorded year-over-year home price increases for the quarter, led by Saginaw, Mich., where prices grew 53.5% to $67,400.

The biggest price drop was in Ocala, Fla, where they fell 23.4% to $93,200. To top of page

http://money.cnn.com/2010/02/11/real_estate/latest_home_prices/index.htm

These statistics are national averages and as you can clearly see, home values have fluctuated signifcantly state by state, town by town, and even location by location. We would be delighted to provide you with a no-obligation opinion of value on your home in today’s market; whether you are thinking of selling, looking to get finances in ordr, or just curious!

Reacting to the NATIONAL ASSOCIATION OF REALTORS®‘ (NAR) 2009 Fourth Quarter Metro Home Prices / State Resales report, NJAR® Chief Executive Officer Jarrod C. Grasso, RCE issued a statement on February 11, 2010.

Grasso stated that “it appears as though the housing market is becoming more balanced,” and that “existing home sales in New Jersey have shown increases in three consecutive quarters.” He also noted that, “state resale activity is over 34 percent higher than the fourth quarter of 2008,” and asserted that there are many other encouraging factors in the current real estate climate, including the home buyer tax credits and extremely low interest rates.”