Home Prices Down 7.6%

The National Association of Realtors (NAR) reported recently that ‘Nationwide, the median existing single family home price plunged 7.6% to $206,500 in the second quarter, down from $223,500 in the same period of 2007. The median price represents the point at which half of all homes sold for more and half sold for less.’

A record number of foreclosures helped drive down prices, according to NAR. In fact, foreclosures and short sales accounted for about one third of all existing homes sales.

Now we seem to be getting into a time when the real economy is starting to affect housing markets more. It’s a little bit of a contest now.

What do you think? Will lower prices stimulate home sales, or will the slowing economy slow down sales? We’d love to hear your opinion. Just click the comment link below and tell us what you think.