Here's The Shifting Trend That's Skewing Average US Home Prices

Following the recession, sales of tbe more expensive homes, those in the $200,000-$400,000 price range and higher, tumbled. Meanwhile, sales of homes under $200,000 surged.

More recently, this trend appears to be changing.

The latest US residential and foreclosure sales report from RealtyTrac has found that more expensive home sales represent a growing share of the market.

"When broken down by average price range, U.S. sales are clearly shifting away from the lower end," Daren Blomquist, vice president at RealtyTrac wrote in a press release.

"Properties selling below $200,000 represented 50 percent of all sales in May, but that was down from a 55 percent share a year ago. Meanwhile, the share of homes selling above $200,000 increased from a 45 percent a year ago to a 50 percent in May 2014."

Ian Shepherdson at Pantheon Macroeconomics has pointed out that the decline in distressed properties, has skewed national average home prices like those generated by the Case-Shiller index.

"As foreclosed homes typically sell for much less than regular private sales, a decline in the proportion of foreclosure sales will raise reported prices," he writes. "The correlation between changes in the proportion of foreclosures and the rate of increase of Case-Shiller home prices is not perfect, but it is real."

Moreover, rising home prices move more people into positive equity and help support the economy.

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