CONSUMER NEWS    RECALLS    COMPLAINT FORM    SCAM ALERTS  


Complain about a product or service

Small Claims Guide | Class Actions | Lemon Law | FAQ | Resources | Newsletters | Spanish
Automotive    Education    Electronics    Family    Finance    Health    Homeowners    Shopping    Travel   
NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

Home Prices Plummet In Fourth Quarter Of 2007

Western states see biggest drop, south close behind



By Mark Huffman
ConsumerAffairs.com

February 14, 2008

Living in a Bubble?
Mortgage Crisis? Act Now to Avoid Foreclosure
Avoiding Foreclosure Takes More Than Hope
---
IndyMac Cuts Staff, Trims Mortgage Operations
Consumer Delinquencies Rise in First Quarter
Existing Home Sales Rose in May
California Sues Countrywide For Mortgage Deception
Metro Home Values Drop Again in April
Mortgage Group To Step Up Homeowner Aid
May Foreclosure Filing Rate Highest Ever
Pending Home Sales Rise Unexpectedly
Mortgage Delinquencies Still On The Rise
Another Survey Reveals Depth Of Consumers' Blues
Did Wall Street Wreck The Economy?
Home Values Plunge; New Home Sales Pick Up
Realtors Complain Lending Limits Hurting Recovery
Federal Home Price Index Drops at Record Pace
Mortgage Fraud Up 176%, FBI Reports
Most Mortgage Rates Drift Lower
Government Says Inflation Eased in April
Big Drop in Home Prices
Foreclosure Filings Up a Record 65% in April
White House Threatens To Veto Anti-Foreclosure Bill
Fed Chief Seeks Greater Effort To Stem Foreclosures
Sen. Kerry Seeks Increase In Small Business Loans
Realtors Frustrated by Banks' Lack of Interest In Short Sales
---
More ...

Wanna buy a house? The deals continue to get better as the price of existing single-family homes in U.S. metros plunged 5.8 percent in the fourth quarter of 2007, from the same period a year earlier.

The report by the National Association of Realtors shows prices were down in all regions of the country, with homes in the Western states falling the most – down 8.7 percent. Prices were 5.4 percent lower in the south.

The industry group took solace in the fact that, while there were price declines in all regions, prices did not fall in all metro areas. Still, prices were lower year-over-year in 77 of the 150 metros surveyed. Sixteen of the 77 metros saw double-digit price declines.

Lawrence Yun, NAR's chief economist, said disruptions in the mortgage market have played a role in declining home values.

"The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the number of transactions in higher price ranges," he said. "For buyers who need loans of more than $417,000, mortgage interest rates have been running more than a percentage point higher, and that has been having an obvious impact. Higher ratios of sales for more moderately priced homes are naturally dampening the national median price as well as the data for some of the more expensive markets."

The group says disruption in higher priced sales continues to drag down the aggregate national median existing single-family home price, which was $206,200 in the fourth quarter, down 5.8 percent from the fourth quarter of 2006 when the median price was $219,000. The national median normally is a typical market price, where half of the homes sold for more and half sold for less.

NAR President Richard Gaylord said he is encouraged with plans to increase conventional loan limits.

"Higher limits for FHA loans, which go into effect March 14, will be a big help to first-time buyers in high-cost markets. Higher limits for conventional loans purchased by Freddie Mac and Fannie Mae will take a bit longer – when they become available, high-income, creditworthy borrowers in high-cost areas will have access to affordable and safer financing, and that will help unleash pent-up demand," he said.

In the fourth quarter, the largest single-family home price increase was the Cumberland area of Maryland and West Virginia, where the median price of $116,600 rose 19.0 percent from a year ago. Next was Yakima, Wash., at $170,600, up 18.0 percent from the fourth quarter of 2006, followed by the Binghamton, N.Y., area, where the fourth quarter median price increased 14.8 percent to $110,000.

"The healthiest housing markets today generally are moderately priced and are experiencing job growth and often population growth, which in turn is supporting strong price growth," Yun said. "Most of the weakest markets have either experienced both job and population losses, or they are experiencing corrections following a prolonged period of rapid price growth."

Median fourth-quarter metro area single-family home prices ranged from a very affordable $72,600 in the Youngstown-Warren-Boardman area of Ohio and Pennsylvania, to nearly 12 times that amount in the San Jose-Sunnyvale-Santa Clara area of California, where the median price was $845,300. The second most expensive area was San Francisco-Oakland-Fremont, at $777,300, followed by the Anaheim-Santa Ana-Irvine area (Orange County, Calif.), at $657,400.

Other affordable markets include the Saginaw-Saginaw Township North area of Michigan, with a fourth-quarter median price of $74,900, and Decatur, Ill., at $75,000.

In the condo sector, metro area condominium and cooperative prices – covering changes in 59 metro areas – show the national median existing-condo price was $221,100 in the fourth quarter, essentially unchanged from $221,200 in the fourth quarter of 2006. Thirty-three metros showed annual increases in the median condo price, including four areas with double-digit gains; 26 areas had price declines including four with double-digit drops.

The strongest condo price increases were in Bismarck, N.D., where the fourth quarter price of $125,000 rose 20.8 percent from a year earlier, followed by the New Orleans-Metairie-Kenner area of Louisiana, at $173,300, up 17.8 percent, and Knoxville, Tenn., where the median condo price of $160,800 rose 10.6 percent from the fourth quarter of 2006.

Metro area median existing-condo prices in the fourth quarter ranged from $109,900 in Wichita, Kan., to $595,700 in the San Francisco-Oakland-Fremont area. The second most expensive condo market reported was Los Angeles-Long Beach-Santa Ana, at $363,100, followed by the San Diego-Carlsbad-San Marcos area at $327,000.

Other affordable condo markets include both Indianapolis and Greensboro-High Point, N.C., at $116,700 in the fourth quarter, and the Cleveland-Elyria-Mentor area of Ohio at $120,000.

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate of 4.96 million units in the fourth quarter, down 8.5 percent from 5.42 million in the third quarter, and are 20.9 percent below a 6.26 million-unit pace in the fourth quarter of 2006.

"With prior reports of national home sales declines, it is not surprising to see 14 states with declines in excess of 20 percent from a year ago," Yun noted.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to 6.23 percent in the fourth quarter from 6.55 percent in the third quarter; the rate was 6.25 percent in the fourth quarter of 2006. In recent weeks, Freddie Mac has been reporting the 30-year fixed rate to be under 5.7 percent.

Regionally, the median existing single-family home price in the Midwest declined 3.2 percent to $156,300 in the fourth quarter from the same period in 2006. The strongest metro price increase in the Midwest was in the Springfield, Ill., area, where the median price of $108,600 was 14.4 percent higher than a year ago. Next was Bismarck, N.D., at $144,700, up 13.5 percent from the fourth quarter of 2006, and Waterloo-Cedar Falls, Iowa, at $115,400, up 12.1 percent.

In the Northeast, the median existing single-family home price fell 4.8 percent to $261,700 in the fourth quarter from the same period 2006. After Binghamton, the strongest price increase in the Northeast was in Atlantic City, N.J., at $278,800, up 10.7 percent from the fourth quarter of 2006, followed by the Syracuse, N.Y., area, with a median price of $126,300, up 9.4 percent.

The median existing single-family home price in the South was $171,700 in the fourth quarter, down 5.4 percent from a year earlier. After Cumberland, the strongest price increase in the South was in Amarillo, Texas, at $120,200, up 11.0 percent from a year ago, followed by the Oklahoma City area with an 8.2 percent gain to $133,800, and the San Antonio area, at $151,700, up 7.9 percent.

In the West, the median existing single-family home price was $324,100 in the fourth quarter, which is 8.7 percent below a year ago. After Yakima, the strongest metro price increase in the West was in the Kennewick-Richland-Pasco area of Washington, at $172,400, up 14.0 percent from a year ago, followed by the San Jose-Sunnyvale-Santa Clara area, up 11.2 percent from the fourth quarter of 2006.



Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.


Consumer News

July 9 2008

Print, mail, etc.


Recent Recalls & Safety Alerts

FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F

Sign up now!


Consumer News & Alerts
Every Sunday

Sign up now!


Knowledge is free.
Knowledge is power.

Back to the top |

Advertisement


Home | Rogues Gallery | Good Guys | Complaint Form | News | Recalls | Search | Video | FAQ |
Consumer Resources | Small Claims Guide | Lemon Law | Newsletter | Contact Us
Advertise With Us | Testimonials | Newsroom | RSS Feeds | Radio | Job Postings




Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2008 ConsumerAffairs.com Inc.  All Rights Reserved.