National home prices below 75 percent of the median increased 3.7 percent over a year ago compared to only a 1.8 percent increase for homes priced 125 percent or higher than the national median, according to an analysis by CoreLogic economist Sam Khater released today.
“Negative equity is keeping many potential sellers out of the market, which keeps a lid on inventory and complied with the reduced flow of REO properties has led to much tighter market conditions for lower priced properties, particularly in the hardest hit markets,” wrote Khater.