House prices drop in most U.S. cities-Realtors

WASHINGTON Aug 12 (Reuters) - Housing prices continue to drop in most U.S. cities, with the National Association of Realtors saying on Wednesday more than 80 percent of urban areas in a recent survey reported lower home prices than a year ago.

During the second quarter, 129 out of 155 metropolitan areas had lower median existing single-family home prices than during the second quarter of 2008.

The national median price for single-family homes, which make up the bulk of the U.S. housing market, was $174,100 in the quarter, or 15.6 percent lower than during the same period last year.

Lawrence Yun, NAR chief economist said in a statement the plummeting price pushed sales of existing homes, including condominiums, up in most states and cities. Over the quarter, home sales rose 3.8 percent to a seasonally adjusted annual rate of 4.76 million units from 4.58 million units in the first quarter.

"With low interest rates, lower home prices and a first-time buyer tax credit, we've been seeing healthy increases in home sales, which are a hopeful sign for the economy," he said. "There have been sustained sales gains in Arizona, Nevada and Florida, as well as diverse areas such as Maryland, the District of Columbia and Nebraska."

The largest gains were recorded in Idaho, where sales were up 67.5 percent from the first quarter, followed by Hawaii, where they rose 24.2 percent, and New York, where they increased 22.3 percent. Altogether, sales increased in 39 states.

But, home sales were still 2.9 percent below the 4.90 million-unit pace the country experienced in 2008.

Only nine states had sales higher than a year ago, with California, Minnesota and Michigan all recording double-digit gains. (Reporting by Lisa Lambert; Editing by Andrea Ricci)