According to the latest survey by the National Association of Realtors (NAR), half of metropolitan areas tracked in the third quarter continued to show modest home price increases from a year ago, despite a sharp decline in home sales after the deadline for the home buyer tax credit. In the third quarter, 77 out of 155 metropolitan statistical areas1 (MSAs) had higher median existing single-family home prices in comparison with the third quarter of 2009, including 11 with double-digit increases; two were unchanged and 76 metros showed price declines. In the third quarter of 2009 only 30 MSAs experienced annual price gains.
The national median existing single-family price was little changed at $177,900 in the third quarter, down 0.2% from $178,200 in the third quarter of 2009. Distressed homes, typically sold at discount, accounted for 34% of third quarter sales, up from 30% a year ago.
Lawrence Yun, NAR chief economist, said relatively flat home prices have been the hallmark of the 2010 housing market. "Even with swings in home sales, prices this year have been changing very little from year-ago readings. Areas with some larger swings in home price reflect the degree of distressed sales in those markets," he said.
NAR President Ron Phipps explained, "Given the relationship between mortgage interest rates, home prices and median family income, the buying power in today's market is matching the highest levels we've seen dating all the way back to 1970.
Yun added that there are additional indicators for home price stabilization. "A recent surge in commodity prices, along with the fact that the cost of constructing a new home exceeds the value of existing homes in many markets, bode well for continuing home price stabilization," he said.
Regionally, the median existing single-family home price in the Northeast rose 2.5 percent to $253,400 in the third quarter from a year earlier. Existing-home sales in the Northeast fell 27.3 percent in the third quarter to a pace of 693,000 and are 24.4 percent below the third quarter of 2009. Year-to-date sales in the Northeast totaled 638,000, essentially unchanged from 637,000 at this time last year.
It is still a buyer's market with a wide variety of choices and motivated sellers. Call or email me now to set up a personalized MLS search for homes, and to discuss how we can find a home to fit your needs in Hamilton or surrounding New Jersey communities.
Joe Giancarli, SA
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
www.activerain.com/blogs/josephgiancarli
http://www.newjerseynewhomes.blogspot.com/
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