Home Prices, Existing Sales Continued to Decline in Q3, Says NAR

Home prices continued to fall in a majority of U.S. metropolitan areas in the third quarter, while existing home sales were also down in 32 states, the National Association of Realtors reported Tuesday.

In the third quarter, median single-family home prices rose in 28 of 152 metro areas, compared to the same quarter a year ago.

Distressed sales, including foreclosures and short sales, accounted for roughly 35% to 40% of sales in Q3, pulling down the national average price for a single-family home to $200,500, a 9% decrease from a year prior when the average price was $220,300, NAR reported.

"A very large proportion of distressed home sales are taking place at discounted prices compared to more normal conditions a year ago," said NAR President Charles McMillan.

The largest single-family home price increases were seen in Elmira, NY, which rose 12.5% from a year ago, and in Decatur, Ill, where prices rose 8.7%.

Total state existing home sales, including single-family and condo units, rose 2.6% quarter-over-quarter to 5.04 million units in Q3. From a year ago, however, sales are still down 7.7%, NAR said.

By Stephen Huebl and edited by Sarah Sussman
©CEP News Ltd. 2008