The National Association of Realtors today reported that the median home price in the US fell in August to $225,000 down 1.7% from August of 2005. This is the first time a year over year decline in median home prices has occured since April 1995.
According to The New York Times: “David Lereah, chief economist of the association, said he expects prices to continue to fall. “We do expect an adjustment in home prices to last several months, as we work through a buildup in the inventory of homes on the market,” he said in a written statement. “This is the price correction we’ve been expecting — with sales stabilizing, we should go back to positive price growth early next year.”
At the end of August, there were enough unsold, previously owned homes on the market that it would take 7½ months to sell them all at the current sales pace. The association said that was a bigger backlog than at any time since April 1993.”
Hear that? That quiet hissing sound you’re hearing seems like the beginning of a deflating bubble . . .
Related posts:
- Zillow Takes Step Towards Democratizing Home Prices
- U.S. Home Prices in Sharpest Decline on Record
- Existing Home Sales Hit 2nd Highest Level Ever
- Housing Starts to Fall to 3 Year Lows
- Yes, Housing Prices Can and DO Decline
Article Author: Joshua DorkinJoshua has written 570 articles for us.
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I’m curious about how this news is affecting real estate agents, as much of what I’ve heard on television about the jump in foreclosures (more than 115,000 homes entering the process nationwide in August alone) has been along the more positive lines that real estate investors are going to jump into the market now in even greater numbers. How does this affect agents, though, and other, maybe more “Traditional” buyers and sellers? Is it as bad as it sounds?