Prices rose in nearly 60 per cent of the cities in the first quarter of the year. The median sales price for previously occupied homes rose in 91 out of 152 metropolitan areas.
In 29 cities, there was a double-digit increase in prices. But 58 metros had price declines too.
The NAR also credited government incentives for generating about 1 million additional sales, helping to bring down the inventory of unsold homes.
Sales increased from a year ago in 44 states and the District of Columbia; 31 states and DC saw double-digit gains while two were unchanged and four down.
The national median for existing single-family price was flat at $166,100, down 0.7 per cent from the first quarter 2009 price of $167,300.
Distressed homes, which are typically discounted by 15 per cent, accounted for 36 per cent of first quarter sales, the survey noted.
Regionally, the median existing single-family home price in the Northeast rose 9 per cent to $256,300 in the first quarter from the same quarter in 2009. But in the Midwest, it slipped 0.8 per cent to $130,600 in the first quarter.
In the South, it was $148,200, up 1.1 per cent and in the West it was $210,200, 8.3 per cent below a year ago.
'There's been a change in market psychology,' said NAR President Vicki Cox Golder.
'Buyer confidence is back and home buyers have long-term views. The typical buyer plans to stay in their home for 10 years, so we've put the flipping mentality behind us and most people see housing for what it is - shelter that provides social benefits and a good long-term investment.'
According to Freddie Mac, one of America's biggest buyers of home mortgages, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 5 per cent in the first quarter, up slightly from a record low of 4.92 percent in the fourth quarter.
'Home prices and sales are beginning to recover, inventories are down, private capital is beginning to re-emerge, investor confidence is coming back and the job market is showing signs of improvement,' David H Stevens, assistant secretary, Department of Housing and Urban Development, and commissioner, Federal Housing Administration, said at a gathering of realtors in Washington, DC.
But, he added, that the housing market continued to face challenges, mainly from unemployment and homeowners with negative equity.
"One-third of NAR members report the most important factor limiting potential clients has been difficulty in obtaining a mortgage," Golder said. 'So, the housing recovery isn't as strong as it could be.'
Moreover, the tax credits, which helped the gains, ended April 30. About 2.2 million households used the first-time buyer credit as of late March at a cost of $16 billion.
Economists are worried about a slump in sales after the end of the programme.
Also, according to data released by RealtyTrac, banks are repossessing more homes now than last year.
In April, banks took possession of 92,432 homes, up by 1 per cent from March. But it was an increase of 45 per cent from April 2009.
Now that the federal programme to help home owners has ended, millions more could be facing foreclosure.
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