Biggest Surge in Home Prices Since 2006

Average home price up nearly 10%

The National Association of Realtors (NAR) announced last week that the national median prices for existing homes rose 9.4 percent from July 2011 to July of this year. The average price for an existing home on the market reached 187,300 in July.

5 consecutive months of gains

In addition to the increase in the average price on an annual basis, July also marked the fifth month in a row that the national median price improved over the prior month — the first time that has happened since May of 2006.

400,000 homes no longer underwater

Zillow reported last week that the increase in the average home price translated into about 400,000 homeowners no longer owing more on their homes than what they are worth — negative equity levels in the country dropped from 31.4 percent last quarter to 30.9 percent in the second quarter.

Via: Zillow, AOL Real Estate and Inman News.