Home Prices Stabilizing

December 16, 2007

Many metro areas are now showing rising or stable home prices, according to a recent survey by the National Association of Realtors. In NAR’s latest study, 93 out of 150 metropolitan statistical areas showed increases in median existing single-family home prices from last year. That includes six areas with double-digit annual gains and another 21 metro areas showing increases of six percent or more. About 54 had price declines, and three were unchanged.

Regionally, prices rose in both the Northeast and Midwest, as did the national condo price. Even with most areas showing improvement, a disruption in higher priced sales impacted the national median existing single-family home price - down 2 percent during the third quarter of 2007 from the previous third quarter. Median home prices in the Northeast rose about 3.2 percent during the past year. In the Midwest, the median home price increased 0.5 percent.

The median existing home price in the South is about 3.6 percent below a year ago. In the West, the median price is down by 3.8 percent. Home prices generally seem to be stabilizing in most areas of the country, but nationally they have dropped about 4.5 percent over the past year.

In another survey (by S&P/Case-Shiller for the National Association of Home Builders), the nation’s 20 largest metro areas were targeted and studied. It was determined that five of those areas are showing home price appreciation rates over the past year - seven posted declines of less than 5 percent and eight metro areas registered losses of between 5 and 10 percent.

Posted in All Things San Diego, Helpful Hints, Lending, Local Business, Real Estate