My Real Estate Blog

The 11% year over year gain is a much more reliable gauge of where the market really is and that's a very healthy trajectory because consumers have more confidence in the economy, are spending more, and mortgage rates remain near all-time lows.

Gains in prices year over year in local markets are especially encouraging: Of the 152 metropolitan statistical areas surveyed by the National Association of Realtors, median prices in 91 were higher than the year before. Though most of the gains were in single digits, 29 markets saw median price increases in double digits.

Economists say the price and sales gains reflect the improvements underway in the overall US economy. The latest federal employment numbers saw a 290,000 net job increase in March, plus a drop in new filings for unemployment insurance claims.

Manufacturing jobs are expanding again, after years of declines, and the Gross Domestic Product is up by more than 3%.

In the words of Freddie Mac's chief economist, Frank Nothaft, "the underlying fundamentals for housing markets are improving rapidly" -- and should continue to do so through 2010.