Home prices down 1.2% in third quarter
20.11.2006 15:15
NEW YORK (CNNMoney.com) -- Once-hot housing markets cooled considerably this summer: The National Association of Realtors (NAR) reported Monday that the median price of a single-family house dropped 1.2 percent in the third quarter from a year earlier, continuing a reversal of fortune for sellers that started last winter.
The best performing market in the country was Salem, Oregon, where prices shot up 24.7 percent from a year earlier, to $228,000. Other strong increases occurred in Elmira, New York, up 21.4 percent to $93,600, and Salt Lake City, up 19.3 percent, to $216,300.
Condo prices suffered more than single-family homes with the national median at $222,900 in the third quarter, down 2.1 percent from the same period in 2005.
Knoxville, Tennessee condo prices bucked the trend; they rose 29 percent to $155,700. Other strong condo markets were Wichita, Kansas ($130,300, up 25.5 percent) and Albuquerque ($153,300, up 21 percent.)
The most expensive metro area in the nation was in San Francisco/Oakland, where the median home price is $749,400. Two areas, Decatur, Illinois and Youngstown, Ohio shared the distinction of having the lowest prices - with medians of just $86,000.
Last year at this time real estate was bubbling; prices were recording year-over-year, double-digit increases every quarter. Markets finally started turning during the first quarter of 2006 and now are in retreat.
According to Davis Lereah, chief economist for NAR, conditions are nearly the opposite of what they were 12 months ago.
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