Sale prices of existing homes fall in eight of 10 metro markets in third quarter [Updated]

Prices of existing homes fell in 80% of the nation’s metro markets in the third quarter as distressed sales -- foreclosures and short sales -- accounted for nearly a third of all deals, a national group said this morning.

The national median sale price for an existing single-family home was $177,900, an 11.2% drop from the same period a year earlier, according to the National Assn. of Realtors in Washington. Distressed sales continued to weigh on prices despite a popular tax credit fueling the volume of deals.