A report issued yesterday by the National Association of Realtors indicated that "first-time home buyers responding to improved affordability conditions, and lower prices of foreclosures and short sales, impacted metropolitan area median home prices in the first quarter, while existing-home sales remained sluggish in many parts of the country."
"With first-time buyers accounting for half of all purchases during the first quarter, 134 out of 152 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the first quarter of 2008, while 18 metros had price gains," the study reported.
The study found that the national median existing single-family price was $169,000, 13.8 percent below the first quarter of 2008 and it said that "distressed homes typically are selling for 20 percent less than traditional homes and are downwardly skewing median prices."
"Traditional homes in good condition have held their value much better, so owners shouldn't be overly concerned about median prices. Most sellers can expect a good return if they've been in their home for a normal period of homeownership and haven't excessively tapped their equity," declared Charles McMillan, the president of the association.
Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate2 of 4.59 million units in the first quarter, 6.8 percent below the 4.93 million-unit pace in the first quarter of 2008, according to the study that noted that "sales in the first quarter do not reflect an impact from the first-time home buyer tax credit."
Lawrence Yun, NAR chief economist, said that "housing affordability conditions are at record high levels and we expect a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas." "In many cases," he continued, "homes are selling below replacement construction costs, which speaks to great value in the current market."
The largest single-family home price increase in the first quarter was in the Cumberland area of Maryland and West Virginia, where the median price of $114,900 rose 21.1 percent from a year ago. Next was the Davenport-Moline-Rock Island area of Iowa and Illinois at $100,300, up 13.8 percent from the first quarter of 2008, followed by Columbia, Mo., where the median price increased 6.0 percent to $152,600.
The report said that the national median existing-condo price was $172,800 in the first quarter, down 20.2 percent from the first quarter of 2008; Five metros showed annual increases in the median condo price and 51 areas had declines.
"The strongest condo price increases were in Portland-South Portland-Biddeford, Maine, at $196,900, up 11.2 percent, followed by the Wichita, Kan., area, where the median condo price of $113,900 rose 6.8 percent from the first quarter of 2008, and Bismarck, N.D., at $132,400, up 6.0 percent. Metro area median existing-condo prices in the first quarter ranged from $75,200 in Las Vegas-Paradise, Nev., to $345,900 in San Francisco-Oakland-Fremont. The second most expensive reported condo market was Honolulu at $300,000, followed by the New York-Wayne-White Plains area of New York and New Jersey at $282,300."
"With first-time buyers accounting for half of all purchases during the first quarter, 134 out of 152 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the first quarter of 2008, while 18 metros had price gains," the study reported.
The study found that the national median existing single-family price was $169,000, 13.8 percent below the first quarter of 2008 and it said that "distressed homes typically are selling for 20 percent less than traditional homes and are downwardly skewing median prices."
"Traditional homes in good condition have held their value much better, so owners shouldn't be overly concerned about median prices. Most sellers can expect a good return if they've been in their home for a normal period of homeownership and haven't excessively tapped their equity," declared Charles McMillan, the president of the association.
Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate2 of 4.59 million units in the first quarter, 6.8 percent below the 4.93 million-unit pace in the first quarter of 2008, according to the study that noted that "sales in the first quarter do not reflect an impact from the first-time home buyer tax credit."
Lawrence Yun, NAR chief economist, said that "housing affordability conditions are at record high levels and we expect a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas." "In many cases," he continued, "homes are selling below replacement construction costs, which speaks to great value in the current market."
The largest single-family home price increase in the first quarter was in the Cumberland area of Maryland and West Virginia, where the median price of $114,900 rose 21.1 percent from a year ago. Next was the Davenport-Moline-Rock Island area of Iowa and Illinois at $100,300, up 13.8 percent from the first quarter of 2008, followed by Columbia, Mo., where the median price increased 6.0 percent to $152,600.
The report said that the national median existing-condo price was $172,800 in the first quarter, down 20.2 percent from the first quarter of 2008; Five metros showed annual increases in the median condo price and 51 areas had declines.
"The strongest condo price increases were in Portland-South Portland-Biddeford, Maine, at $196,900, up 11.2 percent, followed by the Wichita, Kan., area, where the median condo price of $113,900 rose 6.8 percent from the first quarter of 2008, and Bismarck, N.D., at $132,400, up 6.0 percent. Metro area median existing-condo prices in the first quarter ranged from $75,200 in Las Vegas-Paradise, Nev., to $345,900 in San Francisco-Oakland-Fremont. The second most expensive reported condo market was Honolulu at $300,000, followed by the New York-Wayne-White Plains area of New York and New Jersey at $282,300."
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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