Prices of homes fall, but not in Chicago - 1.7% rise in metro area unusual in Midwest
Prices of homes fall, but not in Chicago - 1.7% rise in metro area unusual in Midwest
Copyright © 2006, Chicago Tribune
Published November 21, 2006
WASHINGTON -- Home prices fell in about a third of U.S. metropolitan areas in the third quarter, the National Association of Realtors said Monday, while sales of existing homes fell in 38 states, led by steep declines in Nevada, Arizona, Florida and California.
The median price for a single-family home fell in 45 of the 148 metropolitan areas covered in the survey, as a housing slump and job losses forced sellers to accept lower bids for their properties. The median price for condominiums fell in 27 of 57 markets studied.
"With the market in full transition, buyers now have choices and sellers are more willing to negotiate," said David Lereah, chief economist of the trade group. "Under these circumstances, it's no surprise that overall home prices are slightly below a year ago."
Stuart Hoffman, chief economist at PNC Financial Services Group, said he thinks the housing market still has not reached its low point.
"I think the permits numbers point to yet another flight of stairs down on housing before we hit the basement," he said, referring to building permits for October, which hit a nine-year low. "On the other side, stocks are rising, consumer confidence is good, and jobs are rising. Those factors are keeping this decline in housing contained."
Nationally, the median price for a single-family home in the third quarter was $224,900, down 1.2 percent from a year earlier. The median selling price for condos was $222,900, down 2.1 percent from the same period in 2005.
The median price for a single-family home in Detroit fell 11 percent, the biggest loss in the survey, followed by a 9.4 percent decline in Sarasota, Fla., and a 9.2 percent decrease in Canton, Ohio.
Job losses in states such as Michigan, Ohio and Illinois have accelerated as the auto industry fires workers and orders fewer parts from manufacturers. In October, Michigan's unemployment rate rose to 6.9 percent as the U.S. rate fell to a five-year low of 4.4 percent.
The median home price in the Midwest in the third quarter was $170,500, down 2.6 percent from a year earlier, but the median price in the Chicago area rose 1.7 percent, to $279,400.
Sales slid 11.6 percent in Illinois, to 264,600 units, and plunged 17.2 percent in Michigan, to 176,200. Sales in Ohio declined 9.2 percent, to 269,100.
Median single-family prices ranged from $86,000 in both Decatur, Ill., and the Youngstown area of Ohio to $749,400 in the San Francisco-Oakland-Fremont area in California.
Thirty-one metropolitan areas showed increases in the median condo price, including eight areas with double-digit gains. Twenty-seven metropolitan areas showed price declines.
The strongest condo price gains were in the Knoxville, Tenn., area, where the third-quarter price of $155,700 surged 29 percent from a year ago. That was followed by Wichita, Kan., and Albuquerque at 25.5 and 21 percent, respectively.
The median condo price in the Chicago area rose 4.3 percent, to $226,000. Median prices ranged from $108,200 in Rochester, N.Y., to $600,600 in the San Francisco-Oakland-Fremont area.
The survey also showed that sales of existing homes dipped to a seasonally adjusted annual rate of 6.27 million units nationwide, down 12.7 percent from the same period in 2005, when the pace was the second-highest ever.
The declines were the largest in once-booming areas of the country. Sales fell 38 percent in Nevada, 36 percent in Arizona, 34.2 percent in Florida and 28.6 percent in California.
Nine states had sales declines of 20 percent or more compared to the third quarter of 2005. The biggest sales increase was in North Carolina, at 9.7 percent. Texas was second with a sales increase of 8.6 percent.
Copyright © 2006, Chicago Tribune
Published November 21, 2006
WASHINGTON -- Home prices fell in about a third of U.S. metropolitan areas in the third quarter, the National Association of Realtors said Monday, while sales of existing homes fell in 38 states, led by steep declines in Nevada, Arizona, Florida and California.
The median price for a single-family home fell in 45 of the 148 metropolitan areas covered in the survey, as a housing slump and job losses forced sellers to accept lower bids for their properties. The median price for condominiums fell in 27 of 57 markets studied.
"With the market in full transition, buyers now have choices and sellers are more willing to negotiate," said David Lereah, chief economist of the trade group. "Under these circumstances, it's no surprise that overall home prices are slightly below a year ago."
Stuart Hoffman, chief economist at PNC Financial Services Group, said he thinks the housing market still has not reached its low point.
"I think the permits numbers point to yet another flight of stairs down on housing before we hit the basement," he said, referring to building permits for October, which hit a nine-year low. "On the other side, stocks are rising, consumer confidence is good, and jobs are rising. Those factors are keeping this decline in housing contained."
Nationally, the median price for a single-family home in the third quarter was $224,900, down 1.2 percent from a year earlier. The median selling price for condos was $222,900, down 2.1 percent from the same period in 2005.
The median price for a single-family home in Detroit fell 11 percent, the biggest loss in the survey, followed by a 9.4 percent decline in Sarasota, Fla., and a 9.2 percent decrease in Canton, Ohio.
Job losses in states such as Michigan, Ohio and Illinois have accelerated as the auto industry fires workers and orders fewer parts from manufacturers. In October, Michigan's unemployment rate rose to 6.9 percent as the U.S. rate fell to a five-year low of 4.4 percent.
The median home price in the Midwest in the third quarter was $170,500, down 2.6 percent from a year earlier, but the median price in the Chicago area rose 1.7 percent, to $279,400.
Sales slid 11.6 percent in Illinois, to 264,600 units, and plunged 17.2 percent in Michigan, to 176,200. Sales in Ohio declined 9.2 percent, to 269,100.
Median single-family prices ranged from $86,000 in both Decatur, Ill., and the Youngstown area of Ohio to $749,400 in the San Francisco-Oakland-Fremont area in California.
Thirty-one metropolitan areas showed increases in the median condo price, including eight areas with double-digit gains. Twenty-seven metropolitan areas showed price declines.
The strongest condo price gains were in the Knoxville, Tenn., area, where the third-quarter price of $155,700 surged 29 percent from a year ago. That was followed by Wichita, Kan., and Albuquerque at 25.5 and 21 percent, respectively.
The median condo price in the Chicago area rose 4.3 percent, to $226,000. Median prices ranged from $108,200 in Rochester, N.Y., to $600,600 in the San Francisco-Oakland-Fremont area.
The survey also showed that sales of existing homes dipped to a seasonally adjusted annual rate of 6.27 million units nationwide, down 12.7 percent from the same period in 2005, when the pace was the second-highest ever.
The declines were the largest in once-booming areas of the country. Sales fell 38 percent in Nevada, 36 percent in Arizona, 34.2 percent in Florida and 28.6 percent in California.
Nine states had sales declines of 20 percent or more compared to the third quarter of 2005. The biggest sales increase was in North Carolina, at 9.7 percent. Texas was second with a sales increase of 8.6 percent.
posted by Carlos T Mock @ 9:08 AM
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