4th Quarter Metro Area Home Prices Down as Buyers Purchase Distressed Property
There’s this: Most metropolitan area median home prices, impacted by distressed sales, trended down in the fourth quarter from a year earlier. At the same time, existing-home sales rose in only six states from the fourth quarter of 2007, according to the latest survey by the National Association of Realtors®.
In the fourth quarter, 134 out of 153 metropolitan statistical areas showed declines in median existing single-family home prices from the same period in 2007, pulled down by active sales at the lower end that were driven by foreclosures. One area was unchanged and 18 metros reported price gains. NAR’s track of metro area home prices dates back to 1979.
Distressed sales – foreclosures and short sales – accounted for 45 percent of transactions in the fourth quarter, dragging down the national median existing single-family price to $180,100, which is 12.4 percent below the fourth quarter of 2007 when conditions were more balanced; the median is where half sold for more and half sold for less.
…but then there’s this:
It has never been more important than now to work with local professionals to properly gauge local neighborhood conditions because foreclosures are heavily skewing the broader home price figures to be much lower. Big discounts are not occurring in neighborhoods with few foreclosures. A Realtor® who is knowledgeable about local conditions can counsel consumers in making sound long-term housing decisions,” McMillan said.
So, they’re dead wrong about no housing bubble, housing never declining and it being a great time to buy, but NOW they’re the indespensable experts?
…and of course Yun’s nugget of nonsense:
Lawrence Yun, NAR chief economist, said the market is clearly depressed from job losses and consumer concerns about the economy. “Assuming housing provisions in the economic stimulus package are quickly enacted and provide enough encouragement for home buyers, we could see a quick lift in home sales for the critical spring home-buying season,” he said.
Of course! Nevermind that housing started declining when unemployment was low, wages were growing (slightly) and the market was up. Prices are only falling because people are losing their jobs. That silly idea that prices got too high is just crazy.
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