The Real Estate roller-coaster ride continued last year as the median price of U.S. single-family home plunged 11.9% to $173,200.
The housing situation had been looking up earlier in the year, with prices gaining ground in the first nine months. But the increases weren’t enough to push the median home pries above 2008’s bar of $196,600. according to the National Association of Realtors.
And then, prices fell in the fourth quarter, dropping 2.9% compared to the previous 3 months and 4.1% compared to the last quarter of 2008.
Still the quarter-over-quarter drop was encouraging to NAR, which tracks home prices and sales.
“This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” said Lawrence Yun, NAR’s chief economist. “Because buyers are taking on long term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable.”
Another sign of improvement is the increase in the number of homes sold. More than 6 million homes changed hands between October and December- a 27.2% increase from the same time period in 2008.
“The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates.” said Yun. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices. (CNNMoney.com- New York)