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Median home prices continue bad news for real estate market
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WASHINGTON — Median home prices fell in two-thirds of the cities surveyed during the first three months of this year, a real estate trade group reported Tuesday.
The National Association of Realtors said that median prices for existing single-family homes dropped in 100 of 149 metropolitan areas in the January-March period, while 48 metropolitan areas saw prices increase and one reported no change.
Nationally, the median home price — the point where half the homes sold for more and half for less — fell to $196,300 in the first quarter, down by 7.7 percent from the same period a year ago, when the median sales price was $212,600.
The steep price decline was the latest indication of the problems facing the housing market, which is in a prolonged slump that has dragged down sales and home prices.
Lawrence Yun, chief economist for the Realtors, said that part of the problem in the first three months of the year was that it was hard to get so-called jumbo loans because of the credit squeeze triggered by rising mortgage defaults, particularly for subprime loans, mortgages made to borrowers with weak credit histories. Jumbo loans are critical to finance homes in high-cost areas of the country.
"These are highly unusual results because there were very few jumbo loan originations in the latest quarter, so sales are much slower in high-cost areas, and at the same time foreclosures related to subprime mortgages rose," he said.
Yun said that subprime mortgages are accounting for more than half of all mortgage foreclosures and that sharp price declines are principally occurring in neighborhoods where subprime loans had been prevalent.
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I think the REALTORS should cut their commissions to 1% max for both sides and do their part to jumpstart the market...any takers?
#1 Posted by CELTLUV on May 13, 2008 at 1:28 p.m. (Suggest removal)
Commissions didn't cause the decline. Better yet, CELTLUV, why do realtors have to cut commissions for both sides? Only one "sides" pays the commission.
#2 Posted by urknotsmart on May 13, 2008 at 2:52 p.m. (Suggest removal)
No need to worry here. Remember, Hank Fishkind said the naples market has bottomed, so all is well.
#3 Posted by almasonlybar on May 13, 2008 at 3:03 p.m. (Suggest removal)
CELTLUV-sellers pay commissions, except in very few instances! Know what the heck you're talking about dummy.
#4 Posted by trehuger on May 13, 2008 at 4:28 p.m. (Suggest removal)
CELTUV,
Go find one that is willing to work for 1%. You will both get what you deserve.
#5 Posted by POC on May 13, 2008 at 6:11 p.m. (Suggest removal)
trehuger ~ The buyer pays the purchase price for the home with those OUTRAGEOUS realtor commissions built in...I know what I'm talking about. The seller encumbers the price with the commission.
POC ~ what do REALTORS do anyway for that kind of money...6% on a 500k house...thats 30 grand just for jumping on the MLS and letting someone in the house with the SUPRA key...come on...give me a break...
REALTORS are motivated only by $$$!
#6 Posted by CELTLUV on May 13, 2008 at 6:30 p.m. (Suggest removal)
Trehuger - Before you call someone a dummy find out the facts. Although in almost all cases the seller pay the realtor, many sales are split between two realtors - the one that placed the listing and another one chosen by the buyer.
#7 Posted by gotero on May 14, 2008 at 1:35 p.m. (Suggest removal)
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