(February 12, 2009 Release)
Highlights
• In the fourth quarter of 2008, 134 out of 153 metros experienced declines in median existing home prices from a year ago.
• Foreclosures and short sales accounted for 45 percent of transactions in the fourth quarter, lowering the national median price to $180,100 which is 12.4 percent below the fourth quarter median price in 2007.
• Major metros with the steepest price declines were San Francisco (-37.4%), San Diego (-36.4%) and Phoenix (35.5%).
• Major metros posting the smallest price declines were Dallas (-4.8%), Charlotte (-9.0%) and Portland, Oregon (-9%).
• The West region posted the largest price decline at 25.1 percent, while the Midwest, South and Northeast posted 10.6, 7.5 and 4.7 percent declines from a year earlier, respectively.
| NAR Median Regional and Metro Prices | ||
| Median Sales Price (Ths.$) | % Chg a Year Ago | |
| United States | 180.1 | -12.4 |
| Northeast | 248.8 | -4.7 |
| Midwest | 139.5 | -10.6 |
| South | 158.3 | -7.5 |
| West | 243.2 | -25.1 |
| Atlanta | 129.2 | -21.4 |
| Boston | 335.7 | -11.8 |
| Charlotte | 186.3 | -9.0 |
| Chicago | 217.8 | -16.6 |
| Cleveland | 88.3 | -25.5 |
| Dallas | 138.0 | -4.8 |
| Denver | 200.8 | -12.7 |
| Detroit | NA | NA |
| Las Vegas | 181.7 | -33.6 |
| Los Angeles | 354.3 | -31.4 |
| Miami | 234.2 | -32.3 |
| Minneapolis | 188.6 | -13.2 |
| New York | 390.4 | -14.6 |
| Phoenix | 155.9 | -35.5 |
| Portland | 264.5 | -9.0 |
| San Diego | 332.8 | -36.4 |
| San Francisco | 487.1 | -37.4 |
| Seattle | 325.9 | -13.7 |
| Tampa | 151.5 | -24.9 |
| Washington | 295.1 | -26.2 |
Source: National Association of Realtors
Analysis
Distressed home sales, weak demand for non-distressed property, and a deteriorating labor market likely accounted for the dismal home price performance in the fourth quarter of last year. As stated, foreclosures accounted for 45 percent of total home sales in the quarter. Foreclosures are selling at discounted prices relative to normal home sales. Distressed sales were particularly prevalent in California.
The median home price for the first quarter of this year is expected to continue the dismal performance of the fourth quarter due to a massive job losses experienced in the first quarter, combined with weak housing demand for non-distressed properties and a run up of foreclosure sales in the first quarter.
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