House prices retreat in a third of US cities
Monday, 26 November 2007
House prices fell in one-third of US cities last quarter as stricter lending standards caused a 14 per cent decline in sales nationwide.
Prices dropped in 54 of 150 metropolitan areas in the third quarter and the median sales price dropped 2 per cent nationwide, the National Association of Realtors said last week. Home sales, including single-family properties and condominiums, slid to 5.42 million at an annualised pace from 6.29 million a year ago.
Declines in sales and prices signal the housing slump that began in 2006 may extend into its third year, matching the slowdown 18 years ago that ended in the 1991 recession. The housing decline will reduce gross domestic product growth to 2.1 per cent in 2007 from 2.9 per cent a year ago, according to Lawrence Yun, an economist for the Chicago-based trade group.
Ninety-three US cities had price gains and three were unchanged from a year ago, according to the report.
The US median home price, the point at which half the homes sold for more and half for less, was $220,800 in the third quarter, down from $225,300 a year ago, the association said. In the second quarter, prices fell in 50 of 149 cities and the national median dipped 1.5 per cent.
In Houston last week, the Houston Association of Realtors said single-family home prices in October stayed relatively flat at $145,390, compared to $146,120 during the same month last year. Of the 5,171 homes sold by area real estate agents, about 84 per cent were used homes. The median sales price for used homes in the Houston area slipped 1.4 per cent to $136,000.
Palm Bay, Fla, had the biggest price decline in the third quarter, tumbling 12.4 per cent from a year earlier. Sacramento, Calif, fell 10.5 per cent and Sarasota, Fla, dropped 10.4 per cent.
The largest price increase was in Bismarck, ND, up 15.1 per cent from a year ago, followed by Salt Lake City, with a gain of 14.1 per cent, and Yakima, Wash, up 13.6 per cent.
Home sales fell in the District of Columbia and all the 48 US states covered by the report. Data was not available for New Hampshire and Idaho, the trade group said.
Nevada led the sales drop with a fall of 35 per cent from a year ago. Florida was second, dropping 32 per cent, followed by Arizona, off 31 per cent.---Internet
Prices dropped in 54 of 150 metropolitan areas in the third quarter and the median sales price dropped 2 per cent nationwide, the National Association of Realtors said last week. Home sales, including single-family properties and condominiums, slid to 5.42 million at an annualised pace from 6.29 million a year ago.
Declines in sales and prices signal the housing slump that began in 2006 may extend into its third year, matching the slowdown 18 years ago that ended in the 1991 recession. The housing decline will reduce gross domestic product growth to 2.1 per cent in 2007 from 2.9 per cent a year ago, according to Lawrence Yun, an economist for the Chicago-based trade group.
Ninety-three US cities had price gains and three were unchanged from a year ago, according to the report.
The US median home price, the point at which half the homes sold for more and half for less, was $220,800 in the third quarter, down from $225,300 a year ago, the association said. In the second quarter, prices fell in 50 of 149 cities and the national median dipped 1.5 per cent.
In Houston last week, the Houston Association of Realtors said single-family home prices in October stayed relatively flat at $145,390, compared to $146,120 during the same month last year. Of the 5,171 homes sold by area real estate agents, about 84 per cent were used homes. The median sales price for used homes in the Houston area slipped 1.4 per cent to $136,000.
Palm Bay, Fla, had the biggest price decline in the third quarter, tumbling 12.4 per cent from a year earlier. Sacramento, Calif, fell 10.5 per cent and Sarasota, Fla, dropped 10.4 per cent.
The largest price increase was in Bismarck, ND, up 15.1 per cent from a year ago, followed by Salt Lake City, with a gain of 14.1 per cent, and Yakima, Wash, up 13.6 per cent.
Home sales fell in the District of Columbia and all the 48 US states covered by the report. Data was not available for New Hampshire and Idaho, the trade group said.
Nevada led the sales drop with a fall of 35 per cent from a year ago. Florida was second, dropping 32 per cent, followed by Arizona, off 31 per cent.---Internet