Home Prices Drop in 100 out of 149 Metro Areas
Sunday, May 18, 2008
Home prices rose in one out of every three U.S. metropolitan areas in the first quarter of 2008, but dropped in 100 out of 149 metropolitan areas, according to a new report from the National Association of REALTORS® (NAR).
NAR elaborated on this trend, saying in the first quarter, “48 out of 149 metropolitan statistical areas showed higher median existing single-family home prices from a year earlier,” while 100 experienced price declines and one metropolitan area remained stagnant.
During the first quarter, NAR also noticed that the median price on existing single-family homes fell 7.7-percent to $196,300 from $212,600 the year before.
“It’s more important than ever to examine what’s happening with home prices at the city and neighborhood level,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists. “The old real estate mantra of ‘location, location, location’ is perhaps more relevant today than ever before. Consumers should check with REALTORS® for local expertise on what’s going on in their own area because conditions can vary considerably from one neighborhood to the next.”
Lawrence Yun, NAR's chief economist, said the results of the study show a mixed-market, where falling home prices are mostly concentrated to certain areas.
"Sharp price declines are principally in neighborhoods where subprime lending has been widely prevalent,” Yun concluded.
NAR elaborated on this trend, saying in the first quarter, “48 out of 149 metropolitan statistical areas showed higher median existing single-family home prices from a year earlier,” while 100 experienced price declines and one metropolitan area remained stagnant.
During the first quarter, NAR also noticed that the median price on existing single-family homes fell 7.7-percent to $196,300 from $212,600 the year before.
“It’s more important than ever to examine what’s happening with home prices at the city and neighborhood level,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists. “The old real estate mantra of ‘location, location, location’ is perhaps more relevant today than ever before. Consumers should check with REALTORS® for local expertise on what’s going on in their own area because conditions can vary considerably from one neighborhood to the next.”
Lawrence Yun, NAR's chief economist, said the results of the study show a mixed-market, where falling home prices are mostly concentrated to certain areas.
"Sharp price declines are principally in neighborhoods where subprime lending has been widely prevalent,” Yun concluded.
