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National Existing-Home Price Falls 4.2 Percent

Mortgage News > National Existing-Home Price Falls 4.2 Percent
Date: 10/27/2007    National Existing-Home Price Falls 4.2 Percent

The national median price for existing U.S. homes dropped 4.2 percent in September according to the latest data from the National Association of Realtors released Wednesday.

In September, the median price was $211,700, up from $220,900 one year earlier.

The NAR, however, stressed that all real estate is local.

"Because there were fewer transactions at the upper end of the market, there is a downward distortion reflected in a lower national median home price," said NAR senior economist Lawrence Yun. "Home prices continue to trend up in the Northeast and in the condo sector.  In other areas not dependent on jumbo loans, such as much of the Midwest, prices are rising."

By region, the median existing-home price fell in the West 8.8 percent compared with a year-ago to $308,900. Prices also dropped in the South where the September median price declined 5.5 percent from last year to $174,400.

Median prices rose 0.5 percent in the Northeast to $261,700 and 1.4 percent to $170,700 in the Midwest.

Housing inventory grew though, with 4.40 million homes on the market by the end of September, representing a 10.5 month supply at the current sales rate.

"It appears raw inventories are stabilizing, but the housing supply is a bit inflated now because the sales pace does not reflect underlying market conditions sales were dampened by the mortgage cancellations," Yun said.  "Once the pent-up demand begins to move, we'll see housing supplies begin to ease and then prices will edge up."