Home Prices Level Out at End of 2009

Compared to from a year earlier, home sale prices fell 3.4 percent in the last three months of 2009, the smallest annual decline in many quarters and a sign the local market has at least stabilized.The National Association of Realtors stated the median sale price for existing homes was $124,800 in last year’s fourth quarter, down from $129,200 a year earlier.In the third quarter, that compared with far steeper year-over-year declines of 14 percent and 23 percent in the second quarter.With the smallest decline since the housing bubble burst, home prices fell 4 percent in the quarter, and seasonally adjusted sales volume surged 27 percent amid an extended $8,000 first-time buyer tax credit, the association reported.For the third quarter of 2009, the fourth quarter price was down about 4 percent from $129,400. It was ahead of prices for both the second quarter, $121,400, and the first quarter, when the price dipped to $115,600.For all sales, the median price is the midpoint. Half of homes were priced higher, half lower.According to the Realtors Association, 67 out of 151 metropolitan statistical areas reported year-over-year price increases in the fourth quarter nationwide.30 metro areas showed year-over-year increases and 123 saw declines, in the previous quarterly report, the release said.”This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices. Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” stated Lawrence Yun, chief economist for the association.Source: builderonline.com