Home Prices Decline – AGAIN

According to a report released recently by the National Association of Realtors (NAR), national home prices, driven lower by a flood of foreclosures, plummeted in the third quarter by a record 9% year-over-year.

The median price of a single-family home fell in four out of five states. The national median price was $200,500, down 2.9% from the second quarter of 2008.

A flood of foreclosures has driven home prices down. As many as 40% of all sales made during the three months that ended Sept. 30 were short sales or properties repossessed by banks. These are eager sellers. The longer the banks hold the vacant homes, the more it costs them in maintenance, taxes and insurance.

Regionally, single family home prices were the most stable in the South, where they fell just 3.7% to $174,200. They dropped 5.5% in the Midwest to $159,900 and 6.5% in the Northeast to $267,700. In the West, the median price fell 21.4% to $266,300.