Home prices slide 14%

National median home price falls to $169,000 in first quarter, due to market flooded with lower-priced foreclosures and short sales.

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NEW YORK (CNNMoney.com) -- The steep slide in home price accelerated at a record pace during the first three months of 2009, according to an industry report issued Tuesday.

The national median home price of single family homes sold during the first quarter fell 13.8% to $169,000 year over year, and 6.2% compared with the last quarter 2008, according to the National Association of Realtors (NAR). That was the largest year-over-year decline in the 30-year history of the report.

NAR attributed much of the loss to two factors: First-time homebuyers, who are often entry-level buyers, accounted for about half of all purchases during the quarter. And many buyers took advantage of the deeply discounted prices of foreclosed properties and short sales. These "distressed properties" typically sell for 20% less than traditional homes, according to NAR. These homes also accounted for about half of all transactions.

"Traditional homes in good condition have held their value much better, so owners shouldn't be overly concerned about median prices," said NAR president Charles McMillan, in a prepared statement.

Sales volume was weak as well. Homes sold at a 4.59 million annualized rate during the quarter, off 3.2% from the last three months of 2008 and down 6.8% from first quarter 2008.

NAR's chief economist, Lawrence Yun, characterized it as a lull before an upturn. "Housing affordability conditions are at record high levels, " he said, "and we expect a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas."

Pat Newport, a real estate analyst with IHS Global Insight found NAR's state sales volume statistics especially telling - and far from positive. "That tells me the market is still not healthy," he said.

Year-over-year sales volume increased substantially in only a few states, mostly one-time boom areas. Sales were way up in Nevada (116.8%), California (80.6%), Arizona (50.2%) and Florida (25%), as well as Virginia (12.2%) and Minnesota (11.9%). Everywhere else they were down for the year.

"Where prices are down the sharpest, sales volume is up the most," said Mike Larson, a real estate analyst for Weiss Research. "In the post-bubble markets, we've seen more rationality come in."

"Middle income workers can now actually buy a home without having to stretch or get themselves into some crazy mortgage," he added. "Declining prices are not part of the problem, they're part of the solution."

Few cities recorded gains

Among 152 individual metro areas covered by the survey, only 18 reported year-over-year price gains. In Cumberland, Md., prices grew 21.1% to $114,900, the biggest gain of any market.

The second best performance was achieved by Davenport, Iowa, where the median price jumped 13.8% to $100,300 during the quarter. In Columbia, Mo., prices grew 6% to $152,600.

Cape Coral, Fla., posted the biggest drop year-over-year; prices fell 59.1% to $87,300. In Saginaw, Mich., the median cost of a home plunged 53.7% to $30,300, making it the lowest-priced market covered by NAR. In Akron, Ohio, the median priced home sold for $50,100, down 48.7%.

Regionally, prices fell the most in the West at 19.8%. They were down 15.9% in the Northeast, 10.8% in the South and 6.8% in the Midwest.

Despite the increased affordability, Larson does not forecast a return to a normal market until the end of 2010. Until then, he said, "Buyers will continue to have the upper hand." To top of page

NAR 1st quarter 2009 home prices
Metro Area State Median home price
1st Quarter
Percent change from
1st Quarter 2008
Akron OH $50,100 -48.0%
Albany-Schenectady-Troy NY $184,500 -4.9%
Albuquerque NM $182,600 -4.1%
Allentown-Bethlehem-Easton PA-NJ $218,000 -8.0%
Amarillo TX $122,000 -0.2%
Anaheim-Santa Ana CA $435,800 -28.3%
Appleton WI $110,300 -8.4%
Atlanta-Sandy Springs-Marietta GA $115,600 -24.9%
Atlantic City NJ $219,100 -21.0%
Austin-Round Rock TX $182,300 -1.2%
Baltimore-Towson MD $245,800 -9.1%
Barnstable Town MA $276,700 -22.1%
Baton Rouge LA N/A N/A
Beaumont-Port Arthur TX $129,100 5.0%
Binghamton NY $110,300 0.5%
Birmingham-Hoover AL $130,400 -14.9%
Bismarck ND $153,300 -0.1%
Bloomington-Normal IL $153,800 1.9%
Boise City-Nampa ID $157,100 -18.8%
Boston-Cambridge-Quincy MA-NH** $290,700 -18.7%
Boulder CO $328,400 -7.7%
Bridgeport-Stamford-Norwalk CT $347,400 -20.9%
Buffalo-Niagara Falls NY $99,200 2.7%
Canton-Massillon OH $66,200 -25.2%
Cape Coral-Fort Myers FL $87,300 -59.1%
Cedar Rapids IA $127,300 -2.0%
Champaign-Urbana IL $141,600 1.6%
Charleston WV $188,200 -6.6%
Charleston-North Charleston SC $119,200 2.1%
Charlotte-Gastonia-Concord NC-SC $171,500 -11.0%
Chattanooga TN-GA $117,900 -5.8%
Chicago-Naperville-Joliet IL $185,600 -25.6%
Cincinnati-Middletown OH-KY-IN $106,500 -17.1%
Cleveland-Elyria-Mentor OH $69,900 -31.5%
Colordo Springs CO $180,000 -13.8%
Columbia MO $152,600 6.0%
Columbia SC $134,300 -5.2%
Columbus OH $118,300 -10.4%
Corpus Christi TX $126,300 -7.7%
Cumberland MD-WV $114,900 21.1%
Dallas-Fort Worth-Arlington TX $135,700 -4.7%
Danville IL N/A N/A
Davenport-Moline-Rock Island IA-IL $100,300 13.8%
Dayton OH $79,700 -20.7%
Decatur IL $77,100 -2.9%
Deltona-Daytona Beach-Ormond Beach FL $128,700 -26.7%
Denver-Aurora CO $192,900 -13.7%
Des Moines IA $137,300 -7.2%
Detroit-Warren-Livonia MI N/A N/A
Dover DE $201,000 1.0%
Durham NC $171,500 -3.8%
El Paso TX $77,100 -6.4%
Elmira NY $132,800 -0.8%
Erie PA $85,900 -11.1%
Eugene-Springfield OR $210,800 -7.3%
Fargo ND-MN $134,100 -2.0%
Farmington NM $191,200 0.7%
Florence SC $98,500 -15.7%
Ft. Wayne IN $80,600 -9.1%
Gainesville FL $160,300 -14.9%
Gary-Hammond IN $92,000 -25.8%
Glens Falls NY $156,600 -4.0%
Grand Rapids MI $72,000 -30.0%
Green Bay WI $138,400 1.0%
Greensboro-High Point NC $129,700 -8.9%
Greenville SC $142,000 -8.1%
Gulfport-Biloxi MS $132,800 -4.5%
Hagerstown-Martinsburg MD-WV $167,100 -13.3%
Hartford-West Hartford-East Hartford CT $222,300 -10.1%
Honolulu HI $570,000 -8.1%
Houston-Baytown-Sugar Land TX $138,500 -6.7%
Indianapolis IN $94,600 -11.8%
Jackson MS $122,600 -0.8%
Jacksonville FL $154,100 -17.0%
Kalamazoo-Portage MI N/A N/A
Kankakee-Bradley IL $116,600 -2.3%
Kansas City MO-KS $126,600 -9.2%
Kennewick-Richland-Pasco WA $159,300 -2.7%
Kingston NY $194,300 -18.3%
Knoxville TN $138,600 -5.1%
Lansing-E.Lansing MI $65,600 -29.1%
Las Vegas-Paradise NV $155,300 -37.3%
Lexington-Fayette KY $133,800 -3.7%
Lincoln NE $132,400 -1.2%
Little Rock-N. Little Rock AR $125,400 -1.4%
Los Angeles-Long Beach-Santa Ana CA $303,500 -34.1%
Louisville KY-IN $121,100 -8.0%
Madison WI $208,500 -0.04
Manchester-Nashua NH $215,700 -12.0%
Memphis TN-MS-AR $96,100 -13.3%
Miami-Fort Lauderdale-Miami Beach FL $206,000 -35.4%
Milwaukee-Waukesha-West Allis WI $201,500 -1.4%
Minneapolis-St. Paul-Bloomington MN-WI $174,100 -12.9%
Mobile AL $127,900 -1.5%
Montgomery AL $122,500 -8.4%
NY: Edison NJ N/A N/A
NY: Nassau-Suffolk NY $216,500 -15.3%
NY: Newark-Union NJ-PA $150,800 -4.0%
Nashville-Davidson--Murfreesboro TN $374,500 -16.0%
New Haven-Milford CT $429,900 -12.8%
New Orleans-Metairie-Kenner LA $320,900 -11.3%
New York-Northern New Jersey-Long Island NY-NJ-PA $376,700 -18.6%
New York-Wayne-White Plains NY-NJ $358,200 -12.5%
Norwich-New London CT $199,600 -18.5%
Ocala FL $108,600 -25.4%
Oklahoma City OK $129,900 4.0%
Omaha NE-IA $129,000 -2.9%
Orlando FL $154,800 -33.3%
Palm Bay-Melbourne-Titusville FL $114,300 -28.0%
Pensacola-Ferry Pass-Brent FL $137,200 -12.2%
Peoria IL $109,800 -7.7%
Philadelphia-Camden-Wilmington PA-NJ-DE-MD $206,000 -6.7%
Phoenix-Mesa-Scottsdale AZ $129,200 -41.9%
Pittsburgh PA $103,400 -7.3%
Pittsfield MA $180,000 -16.9%
Portland-South Portland-Biddeford ME $192,100 -17.9%
Portland-Vancouver-Beaverton OR-WA $248,600 -13.3%
Providence-New Bedford-Fall River RI-MA $202,400 -23.0%
Raleigh-Cary NC $223,000 -2.2%
Reading PA $145,200 -2.2%
Reno-Sparks NV $209,800 -26.0%
Richmond VA N/A N/A
Riverside-San Bernardino-Ontario CA $172,500 -39.9%
Rochester NY $105,600 -2.7%
Rockford IL $100,000 -13.2%
Sacramento--Arden-Arcade--Roseville CA $169,300 -34.5%
Saginaw-Saginaw Township North MI $30,300 -53.7%
Saint Louis MO-IL $100,900 -16.9%
Salem OR $200,000 -8.5%
Salt Lake City UT $230,100 1.9%
San Antonio TX $148,300 -1.0%
San Diego-Carlsbad-San Marcos CA $323,200 -29.6%
San Francisco-Oakland-Fremont CA $402,000 -42.7%
San Jose-Sunnyvale-Santa Clara CA $450,000 -42.3%
Sarasota-Bradenton-Venice FL $155,200 -40.8%
Seattle-Tacoma-Bellevue WA $315,200 -15.3%
Shreveport-Bossier City LA $136,000 3.4%
Sioux Falls SD $95,500 -29.8%
South Bend-Mishawaka IN $61,800 -23.6%
Spartanburg SC $109,100 -16.3%
Spokane WA $180,000 -2.7%
Springfield IL $111,400 3.9%
Springfield MA $170,100 -14.1%
Springfield MO $116,300 -3.8%
Syracuse NY $113,700 3.1%
Tallahassee FL $156,000 -10.0%
Tampa-St.Petersburg-Clearwater FL $135,300 -26.7%
Toledo OH $65,500 -27.0%
Topeka KS $106,500 3.1%
Trenton-Ewing NJ $252,500 -12.4%
Tucson AZ $176,400 -20.2%
Tulsa OK N/A N/A
Virginia Beach-Norfolk-Newport News VA-NC $201,000 -8.2%
Washington-Arlington-Alexandria DC-VA-MD-WV $279,400 -25.0%
Waterloo/Cedar Falls IA $97,300 -6.4%
Wichita KS $108,700 -3.5%
Worcester MA $189,600 -23.6%
Yakima WA $143,500 -3.3%
Youngstown-Warren-Boardman OH-PA $51,200 -0.244
U.S.   $169,000 -13.8%
NE   $235,500 -15.9%
MW   $132,400 -6.8%
SO   $146,600 -10.8%
WE   $237,600 -19.8%
Note1: California prices provided by the California Association of REALTORS®
*All areas are metropolitan statistical areas (MSA) as defined by the US Office of Management and Budget as of 2004. They include the named central city and surrounding areas. N/A Not Available p Preliminary r Revised
Most current data available
© 2008 National Association of REALTORS®
Metro Area State Median Price
1Q 2009
% Change
(1-yr)
Albuquerque NM $150,400 -2.4%
Atlanta-Sandy Springs-Marietta GA N/A N/A
Austin-Round Rock TX $144,400 -18.1%
Baltimore-Towson MD $213,300 -6.1%
Bismarck ND $132,400 6.0%
Boston-Cambridge-Quincy MA-NH $232,900 -19.1%
Boulder CO $205,500 -4.1%
Bridgeport-Stamford-Norwalk CT N/A N/A
Cape Coral-Fort Myers FL $120,850 -34.0%
Chicago-Naperville-Joliet IL $195,700 -18.3%
Cincinnati-Middletown OH-KY-IN $116,200 -0.9%
Cleveland-Elyria-Mentor OH N/A N/A
Colorado Springs CO $132,300 -6.7%
Columbus OH $117,300 -11.1%
Dallas-Fort Worth-Arlington TX $127,100 -4.8%
Greensboro-High Point NC $106,700 -7.0%
Hartford-West Hartford-East Hartford CT $162,900 -5.1%
Honolulu HI $300,000 -9.1%
Houston-Baytown-Sugar Land TX $126,400 -1.9%
Indianapolis IN $98,900 -10.0%
Jacksonville FL $117,500 -15.2%
Knoxville TN $139,600 -7.4%
Las Vegas-Paradise NV $75,200 -53.1%
Los Angeles-Long Beach-Santa Ana CA $220,000 -36.0%
Louisville KY-IN $113,600 -11.1%
Madison WI $152,600 -11.7%
Manchester-Nashua NH $143,300 -16.6%
Miami-Fort Lauderdale-Miami Beach FL $107,400 -39.0%
Milwaukee-Waukesha-West Allis WI $145,600 -14.7%
New Haven-Milford CT $163,700 -0.1%
New Orleans-Metairie-Kenner LA $167,100 -2.0%
Norwich-New London CT $167,200 -8.2%
New York-Wayne-White Plains NY-NJ $282,300 -15.4%
NY: Newark-Union NJ-PA $271,700 -14.7%
NY:Edison NJ $243,100 -11.4%
NY:Nassau-Suffolk NY $229,600 -8.1%
Palm Bay-Melbourne-Titusville FL $90,560 -22.0%
Philadelphia-Camden-Wilmington PA-NJ-DE-MD $192,900 -2.8%
Phoenix-Mesa-Scottsdale AZ $113,000 -40.5%
Portland-South Portland-Biddeford ME $196,900 11.2%
Portland-Vancouver-Beaverton OR-WA $191,500 -10.8%
Providence-New Bedford-Fall River RI-MA $175,300 -15.4%
Reno-Sparks NV $112,200 -40.0%
Richmond VA N/A N/A
Riverside-San Bernardino-Ontario CA N/A N/A
Rochester NY $104,100 -10.3%
Sacramento--Arden-Arcade--Roseville CA $93,800 -36.2%
Salt Lake City UT $159,800 -1.6%
San Diego-Carlsbad-San Marcos CA $178,100 -39.5%
San Francisco-Oakland-Fremont CA $345,900 -36.7%
Sarasota-Bradenton-Venice FL $174,525 -35.0%
Springfield MA $151,800 4.9%
Syracuse NY $114,900 3.4%
Tampa-St. Petersburg-Clearwater FL $106,300 -30.4%
Toledo OH $128,700 -5.2%
Trenton-Ewing NJ $230,200 -7.9%
Tucson AZ $123,300 -8.9%
Virginia Beach-Norfolk-Newport News VA-NC $189,000 -0.5%
Washington-Arlington-Alexandria DC-VA-MD-WV $220,500 -20.5%
Wichita KS $113,900 6.8%
Worcester MA $140,600 -24.5%
U.S.   $172,800 -20.2%
NE   $220,400 -11.9%
MW   $157,000 -20.0%
SO   $130,000 -24.8%
WE   $174,900 -25.7%
*All areas are metropolitan statistical areas (MSA) as defined by the US Office of Management and Budget as of 2004.
** Boston-Cambridge-Quincy, MA-NH - Data from New Hampshire not available
They include the named central city and surrounding areas. N/A Not Available p Preliminary r Revised
© 2008 National Association of REALTORS®
State Total Sales % Change
(1-yr)
ALABAMA $73,200 -25.3%
ALASKA $26,800 -10.7%
ARIZONA $134,000 50.2%
ARKANSAS $56,800 -21.5%
CALIFORNIA $560,000 80.6%
COLORADO $94,000 -17.0%
CONNECTICUT $38,400 -25.6%
DELAWARE $10,800 -10.0%
District of Columbia $6,400 -15.8%
FLORIDA $307,600 25.0%
GEORGIA $172,000 -6.5%
HAWAII $13,200 -40.0%
IDAHO $16,000 -11.1%
ILLINOIS $157,200 -21.7%
INDIANA $89,200 -33.4%
IOWA $50,400 -10.6%
KANSAS $49,600 -22.5%
KENTUCKY $65,200 -23.5%
LOUISIANA $52,800 -20.0%
MAINE $18,000 -16.7%
MARYLAND $58,000 -12.1%
MASSACHUSETTS $90,000 -9.3%
MICHIGAN $168,400 -3.7%
MINNESOTA $109,200 11.9%
MISSISSIPPI $37,200 -31.6%
MISSOURI $98,800 -18.2%
MONTANA $17,600 -18.5%
NEBRASKA $27,600 -15.9%
NEVADA $98,000 116.8%
NEW HAMPSHIRE $16,800 -10.6%
NEW JERSEY $93,400 -18.7%
NEW MEXICO $26,400 -29.0%
NEW YORK $202,800 -23.1%
NORTH CAROLINA $114,400 -37.0%
NORTH DAKOTA $9,600 -27.3%
OHIO $234,800 -1.5%
OKLAHOMA $76,000 -18.5%
OREGON $43,200 -29.4%
PENNSYLVANIA $143,600 -18.8%
RHODE ISLAND $12,400 -3.1%
SOUTH CAROLINA $62,800 -31.1%
SOUTH DAKOTA N/A N/A
TENNESSEE $96,400 -27.0%
TEXAS $402,800 -22.1%
UTAH $26,000 -17.7%
VERMONT $8,400 -34.4%
VIRGINIA $114,000 12.2%
WASHINGTON $65,600 -35.4%
WEST VIRGINIA $22,800 -18.6%
WISCONSIN $64,400 -22.6%
WYOMING $10,400 -21.2%
United States $4,590,000 -6.8%
Northeast $693,000 -20.1%
Midwest $1,037,000 -13.1%
South $1,697,000 -12.7%
West $1,160,000 24.3%
N/A Not Available r Revised p Preliminary
© 2008 National Association of REALTORS®
Note: State will not add up to national/regional totals due to independent samples.
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