Home Prices Rise in Half of U.S. Cities as Markets Stabilize By Prashant Gopal - document.write(dateFormat(new Date(1336580001000),"mmm d, yyyy h:MM TT Z"));May 9, 2012 1:13 PM GMT-0300Wed May 09 16:13:21 GMT 2012//<![CDATA[ $(document).ready(function () { $(".view_story #story_content .attachments img.small_img").each(function(){ var self = $(this); if (self.width() != 190){ self.width(190); } }); }); //]]> //this script is for the story image lightbox $(".thumbnail_container > a[rel]").overlay({ mask:'#333', effect: 'default', fixed:false, onBeforeLoad: function(){ $('#container').addClass('overlay_open'); $('.overlay_container').addClass('overlay_open'); }, onClose: function(){ $('#container').removeClass('overlay_open'); $('.overlay_container').removeClass('overlay_open'); } }); Prices for single-family homes climbed in half of U.S. cities in the first quarter as real estate markets stabilized. The median sales price increased from a year earlier in 74 of 146 metropolitan areas measured, the National Association of Realtors said in a report today. In the fourth quarter, only 29 areas had gains. Daniel Acker/BloombergA development in Oswego, Illinois.A development in Oswego, Illinois. Photographer: Daniel Acker/Bloomberg Play VideoQMay 7 (Bloomberg) -- Michelle Meyer, a senior economist at Bank of America Merrill Lynch, talks about the U.S. economy and real estate market. She speaks with Tom Keene on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg) The U.S. housing market is showing signs of bottoming as improving employment and record-low mortgage rates boost demand while inventories of available properties tighten. At the end of March, 2.37 million previously owned homes were available for sale, 22 percent fewer than a year earlier, the Realtors said. The housing market is still depressed but it had a good quarter, Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts, said in a telephone interview today. Were on the mend but its still something that will take two or three years before were back to normal. The national median existing single-family home price was $158,100 in the first quarter, down 0.4 percent from the first three months of 2011, according to the Realtors group. The best-performing metro area was Cape Coral, Florida, where prices increased 28.1 percent from a year earlier. Prices rose 19 percent in Grand Rapids, Michigan; 16.9 percent in Palm Bay, Florida; and 16.6 percent in Erie, Pennsylvania. Biggest Declines Kingston, New York, had the biggest decline, with the median selling price tumbling 22 percent in the quarter. It was followed by Stamford, Connecticut, with an 18 percent decline; Mobile, Alabama, at 14.7 percent; and Atlanta at 12 percent. The median selling price is influenced by the mix of homes on the market and probably was boosted by a smaller share of transactions involving distressed properties. Those homes, which sell at discounts, accounted for 32 percent of first-quarter sales, down from 38 percent a year earlier. Prices are more volatile than normal because they are affected by the prevalence of distressed sales and sudden upswings in buyer interest in some areas, said Lawrence Yun, the groups chief economist. Broad Shortages We have broad shortages of lower-priced homes in much of the country, with very tight supply in Western states for homes through the middle price ranges, Yun said in the report.This is good news for many sellers who wish to list now, or for those waiting