Latest Housing Market Numbers: Median Prices Down 11%
Sales of existing homes fell in 41 states during the April-June quarter while home prices were down in one-third of the metropolitan areas surveyed.
The new figures from the National Association of Realtors underscored the severity of the current housing market slump, the worst downturn in 16 years.
However, Realtor said they saw some glimmers of hope in the data. They noted that existing home prices were up in 97 of the 149 metropolitan areas surveyed compared with the sales prices of a year ago.
That represented price gains for 65 percent of the areas surveyed, an improvement from the first quarter of this year when only about 55 percent of the metropolitan areas reported price gains from the same period a year ago. In the fourth quarter of last year, less than half of the metropolitan areas reported price gains.
“Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006,” said Lawrence Yun, senior economist for the Realtors.
The states suffering the biggest drop in sales in the second quarter, compared to the same period a year ago, were:
- Florida, down 41.3 percent
- Nevada, down 37.5 percent
- Arizona, down 23.4 percent
- Tennessee housing market, down 21.5 percent
- Maryland, down 21.1 percent
- California, down 19.8 percent
Bucking the downward trend, six states actually showed sales increases during the second quarter while one state had unchanged sales and there was incomplete data for two states, the Realtors reported.
Wyoming had the biggest sales increase, a rise of 10.8 percent in the second quarter of this year compared to the second quarter of 2006. Sales were up 4.1 percent in the Iowa mortgage market from a year ago while North Dakota mortgage demand rose by 2.9 percent, the third strongest gain.
Nationwide, sales of existing homes totaled 5.91 million units at an annual rate in the second quarter, down 10.8 percent from the sales pace of the second quarter of 2006.
The national median sales price in the second quarter was $223,800, down 1.5 percent from a median price in the spring of 2006.
In the Midwest, total existing-home sales dropped 8.4 percent in the second quarter compared with a year ago. The median existing single-family home price in the Midwest was $163,500, down 2.2 percent from the second quarter of 2006. This does at least provide home mortgage shoppers with better deals.
The strongest metro price increase in the Midwest was in the Bismarck, N.D., area where the median price of $151,400 was 9.2 percent higher than a year ago. Next was Gary-Hammond, Ind., at $137,800, up 7.3 percent from the second quarter of 2006, and Bloomington-Normal, Ill., at $161,500, up 7.0 percent
“Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends in many local markets,” Yun said.