Metro Home Prices Transition in Second Quarter

19 08 2006

Appreciation in existing single-family home prices cooled to single digit rates in most metropolitan areas during the second quarter, while metro area condo prices were essentially flat in comparison with a year ago, according to the latest survey by National Association of Realtors®.

The association’s second-quarter metro area single-family home price report, covering changes in 151 metropolitan statistical areas,* shows 37 areas with double-digit annual increases and 26 metros experiencing generally minor price declines – many of the areas with declines are showing weakness in the local labor market.

The national median existing single-family home price was $227,500 in the second quarter, up 3.7 percent from a year earlier when the median price was $219,400. The median is a typical market price where half of the homes sold for more and half sold for less.

David Lereah, NAR’s chief economist, said a market transition is apparent. “With more sellers competing for the pool of buyers, the pressure on home prices has evaporated in most metro areas,” he said. “After a full year of double-digit gains in the national median price, the timing is right for a cooling in the rate of growth – we are presently experiencing a soft landing in the housing sector.”

Source: National Association of Realtors®

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