Home Prices Slide 14%

According to the National Association of Realtors, the steep slide in home price accelerated at a record pace during the first three months of 2009.

The national median home price of single family homes sold during the first quarter fell 13.8% to $169,000 year over year, and 6.2% compared with the last quarter 2008.

NAR attributed much of the loss to two factors: First-time homebuyers, who are often entry-level buyers, accounted for about half of all purchases during the quarter. And many buyers took advantage of the deeply discounted prices of foreclosed properties and short sales. These “distressed properties” typically sell for 20% less than traditional homes, according to NAR. These homes also accounted for about half of all transactions.

NAR’s chief economist, Lawrence Yun, characterized it as a lull before an upturn. “Housing affordability conditions are at record high levels, ” he said, “and we expect a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas.”

This prediction from Yun further acknowledges what we’ve been warning potential homebuyers on this blog for several weeks now, and that is, “Don’t try to wait out the housing market or you will have missed the bottom!”