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NEW YORK (CNNMoney.com) -- Home prices fell 12.4% during the fourth quarter of 2008, the largest year-over-year decline since the National Association of Realtors began keeping comprehensive records in 1979.
The median price for a U.S. home sold during the fourth quarter of 2008 fell to $180,100, down from $205,700 during the last quarter of 2007.
Prices fell by a record 9.5% in 2008, to $197,100, compared to $217,900 in 2007. In comparison, median home prices dipped a mere 1.6% between 2006 and 2007.
Distressed properties, the foreclosures and short sales that have flooded the market, accounted for 45% of all deals. That has driven sales volume up in Nevada, California and other states hit hard by foreclosures, but these heavily discounted homes have also pushed median prices down.
"People are responding to discounted prices and are slowly absorbing the excess inventory," said NAR President Charles McMillan. "Buyers clearly see value in today's pricing."
Pain is widespread
The vast majority of metropolitan areas, 134 out of 153, recorded price declines compared with the last quarter of 2007.
"Home markets are weak just about everywhere," said Pat Newport, an analyst with HIS Global Insight, "but in a few states, distressed sales are driving transactions."
In Cape Coral-Ft. Myers, Fla., which has the third-highest rate of foreclosure filings in the nation, prices fell a devastating 50.8% for the year, to $110,900 from $225,300. That was the most precipitous plunge for any metro area.
In Saginaw, Mich., prices fell 41.4%. In Riverside-San Bernardino, Calif., prices dropped 40.8% and in San Jose, Calif., prices declined 37.7%.
The Beaumont-Port Arthur area of Texas bucked the national trend. Its median home price jumped 16.7% to $132,600 - the highest increase in the nation. Other winners included Bloomington, Ill., up 9.6%; Dover, Del., up 6.5%; and Bismarck, M.D., up 6%.
The high number of distressed sales pushed prices down for several reasons, according to Lawrence Yun, chief economist for NAR. For one thing, many sales were in low- and moderate-income housing developments where buyers during the boom years financed their purchases using subprime mortgages. In higher-end areas, fewer exotic mortgages were used.
"Take Orange County, Calif.," said Yun. "It's the lower priced areas there where homes are selling. The high priced areas along the coast are not." As a result, the median home sales price for the area skews lower.
And the high number of foreclosures means banks are willing to slash prices deeply to move inventory. Many of the properties they've obtained through repossessions now sit vacant, soaking up lender money for maintenance, heating, property taxes and insurance. The banks willingly take lower prices to end those cash outlays, which brings down prices even for normal sellers.
Then there's also what Yun calls a "frozen" jumbo-mortgage lending market, which has also slowed sales of higher-priced homes and reduced median prices.
The good news is that bargain prices are bringing many new buyers into the market. "Many are first-time homebuyers who were priced out of the market during the boom," Yun said.
Stimulus help
NAR is hoping a piece of the stimulus bill before Congress will build on that momentum and provide an extra incentive for buyers.
"Assuming housing provisions in the economic stimulus package are quickly enacted and provide enough encouragement for homebuyers, we could see a quick lift in home sales for the critical spring home-buying season," said Yun.
On Thursday, it appeared that the final iteration of the homebuyer's tax credit, which had very different provisions in the House and Senate versions of the stimulus package, was shaping up to be closer to the House bill, according to Yun.
That means a credit of $7,500, perhaps $8,000, or 10% of home price for first-time homebuyers. This windfall will not have to be repaid by homebuyers and can be taken off 2008 taxes. NAR estimates that could draw in an additional half-million buyers this year.
"It could help reduce the high inventory of homes for sale," said Yun, "and get housing markets moving again. It's hard to get the economy back to growth until that happened."
First Published: February 12, 2009: 10:02 AM ET
NAR 4th quarter 2008 home prices
- Single-family Homes
- Apartment Condo-Coops
- Total Home Sales
| MetroArea | State | Median home price 4th Quarter | Percent change from 4th Quarter 2007 |
|---|---|---|---|
| Akron | OH | $86,100 | -21.1% |
| Albany-Schenectady-Troy | NY | $193,100 | -3.6% |
| Albuquerque | NM | $183,700 | -6.2% |
| Allentown-Bethlehem-Easton | PA-NJ | $238,000 | -3.4% |
| Amarillo | TX | $122,600 | 2.0% |
| Anaheim-Santa Ana | CA | $464,800 | -30.8% |
| Appleton | WI | $127,600 | -2.5% |
| Atlanta-Sandy Springs-Marietta | GA | $129,200 | -21.4% |
| Atlantic City | NJ | $229,100 | -17.8% |
| Austin-Round Rock | TX | $184,800 | -0.1% |
| Baltimore-Towson | MD | $260,100 | -5.5% |
| Barnstable Town | MA | $325,300 | -14.9% |
| Baton Rouge | LA | $156,400 | -7.8% |
| Beaumont-Port Arthur | TX | $132,600 | 16.7% |
| Binghamton | NY | $105,800 | -3.7% |
| Birmingham-Hoover | AL | $135,400 | -13.3% |
| Bismarck | ND | $164,300 | 6.0% |
| Bloomington-Normal | IL | $159,300 | 9.6% |
| Boise City-Nampa | ID | $168,800 | -14.7% |
| Boston-Cambridge-Quincy | MA-NH** | $335,700 | -11.8% |
| Boulder | CO | $324,400 | -12.6% |
| Bridgeport-Stamford-Norwalk | CT | $379,700 | -17.5% |
| Buffalo-Niagara Falls | NY | $106,200 | 0.8% |
| Canton-Massillon | OH | $80,400 | -18.0% |
| Cape Coral-Fort Myers | FL | $110,900 | -50.8% |
| Cedar Rapids | IA | $136,900 | 1.5% |
| Champaign-Urbana | IL | $132,000 | -8.1% |
| Charleston | WV | $124,800 | 1.5% |
| Charleston-North Charleston | SC | $193,800 | -5.2% |
| Charlotte-Gastonia-Concord | NC-SC | $186,300 | -9.0% |
| Chattanooga | TN-GA | $123,800 | 1.8% |
| Chicago-Naperville-Joliet | IL | $217,800 | -16.6% |
| Cincinnati-Middletown | OH-KY-IN | $116,000 | -12.4% |
| Cleveland-Elyria-Mentor | OH | $88,300 | -25.5% |
| Colordo Springs | CO | $187,000 | -11.2% |
| Columbia | MO | $138,100 | -4.2% |
| Columbia | SC | $139,200 | -3.9% |
| Columbus | OH | $126,500 | -7.8% |
| Corpus Christi | TX | $134,000 | -2.8% |
| Cumberland | MD-WV | $96,900 | -16.9% |
| Dallas-Fort Worth-Arlington | TX | $138,000 | -4.8% |
| Danville | IL | N/A | N/A |
| Davenport-Moline-Rock Island | IA-IL | $98,400 | -3.6% |
| Dayton | OH | $87,800 | -17.6% |
| Decatur | IL | $79,300 | 5.9% |
| Deltona-Daytona Beach-Ormond Beach | FL | $143,600 | -20.7% |
| Denver-Aurora | CO | $200,800 | -12.7% |
| Des Moines | IA | $149,700 | -1.9% |
| Detroit-Warren-Livonia | MI | N/A | N/A |
| Dover | DE | $212,500 | 6.5% |
| Durham | NC | $165,600 | -7.0% |
| El Paso | TX | $140,700 | 5.3% |
| Elmira | NY | $80,900 | -0.4% |
| Erie | PA | $95,200 | -3.4% |
| Eugene-Springfield | OR | $212,800 | -10.4% |
| Fargo | ND-MN | $140,100 | -1.1% |
| Farmington | NM | $185,000 | -0.8% |
| Florence | SC | $119,100 | 1.9% |
| Ft. Wayne | IN | $88,600 | -2.5% |
| Gainesville | FL | $174,000 | -11.5% |
| Gary-Hammond | IN | $115,100 | -7.6% |
| Glens Falls | NY | $147,600 | -9.9% |
| Grand Rapids | MI | $80,500 | -35.2% |
| Green Bay | WI | $146,600 | -1.5% |
| Greensboro-High Point | NC | $135,400 | -10.2% |
| Greenville | SC | $146,900 | -5.5% |
| Gulfport-Biloxi | MS | $129,500 | -13.9% |
| Hagerstown-Martinsburg | MD-WV | $171,400 | -10.8% |
| Hartford-West Hartford-East Hartford | CT | $233,700 | -9.4% |
| Honolulu | HI | $610,000 | -2.4% |
| Houston-Baytown-Sugar Land | TX | $142,100 | -5.5% |
| Indianapolis | IN | $100,200 | -12.1% |
| Jackson | MS | $126,600 | 4.7% |
| Jacksonville | FL | $160,700 | -9.5% |
| Kalamazoo-Portage | MI | N/A | N/A |
| Kankakee-Bradley | IL | $125,600 | 1.0% |
| Kansas City | MO-KS | $131,000 | -11.6% |
| Kennewick-Richland-Pasco | WA | $165,900 | -3.8% |
| Kingston | NY | $224,000 | -9.0% |
| Knoxville | TN | $141,700 | -8.6% |
| Lansing-E.Lansing | MI | $80,000 | -27.0% |
| Las Vegas-Paradise | NV | $181,700 | -33.6% |
| Lexington-Fayette | KY | $138,200 | -3.3% |
| Lincoln | NE | $133,100 | -3.6% |
| Little Rock-N. Little Rock | AR | $125,200 | -1.8% |
| Los Angeles-Long Beach-Santa Ana | CA | $354,300 | -31.4% |
| Louisville | KY-IN | $124,000 | -6.8% |
| Madison | WI | $227,000 | -0.003 |
| Manchester-Nashua | NH | $238,600 | N/A |
| Memphis | TN-MS-AR | $100,200 | -19.4% |
| Miami-Fort Lauderdale-Miami Beach | FL | $234,200 | -32.3% |
| Milwaukee-Waukesha-West Allis | WI | $194,900 | -11.2% |
| Minneapolis-St. Paul-Bloomington | MN-WI | $188,600 | -13.2% |
| Mobile | AL | $125,000 | -9.0% |
| Montgomery | AL | $126,300 | -11.9% |
| NY: Edison | NJ | $343,600 | -7.2% |
| NY: Nassau-Suffolk | NY | $381,300 | -17.4% |
| NY: Newark-Union | NJ-PA | $373,600 | -14.3% |
| Nashville-Davidson--Murfreesboro | TN | N/A | N/A |
| New Haven-Milford | CT | $240,400 | -10.6% |
| New Orleans-Metairie-Kenner | LA | $154,900 | -2.1% |
| New York-Northern New Jersey-Long Island | NY-NJ-PA | $390,400 | -14.6% |
| New York-Wayne-White Plains | NY-NJ | $458,600 | -11.7% |
| Norwich-New London | CT | $223,100 | -11.6% |
| Ocala | FL | $121,700 | -21.5% |
| Oklahoma City | OK | $124,200 | -7.9% |
| Omaha | NE-IA | $129,700 | -4.4% |
| Orlando | FL | $175,200 | -27.1% |
| Palm Bay-Melbourne-Titusville | FL | $123,600 | -18.3% |
| Pensacola-Ferry Pass-Brent | FL | $151,700 | -3.0% |
| Peoria | IL | $117,200 | -1.1% |
| Philadelphia-Camden-Wilmington | PA-NJ-DE-MD | $212,500 | -6.3% |
| Phoenix-Mesa-Scottsdale | AZ | $155,900 | -35.5% |
| Pittsburgh | PA | $109,100 | -6.7% |
| Pittsfield | MA | $206,000 | 1.7% |
| Portland-South Portland-Biddeford | ME | $214,500 | -11.4% |
| Portland-Vancouver-Beaverton | OR-WA | $264,500 | -9.0% |
| Providence-New Bedford-Fall River | RI-MA | $224,500 | -17.8% |
| Raleigh-Cary | NC | $230,900 | -2.0% |
| Reading | PA | $155,100 | 1.0% |
| Reno-Sparks | NV | $231,200 | -23.3% |
| Richmond | VA | $199,400 | -11.7% |
| Riverside-San Bernardino-Ontario | CA | $201,300 | -40.8% |
| Rochester | NY | $112,500 | -6.9% |
| Rockford | IL | $111,500 | -1.5% |
| Sacramento--Arden-Arcade--Roseville | CA | $187,900 | -36.9% |
| Saginaw-Saginaw Township North | MI | $43,900 | -41.4% |
| Saint Louis | MO-IL | $113,700 | -14.8% |
| Salem | OR | $198,000 | -14.4% |
| Salt Lake City | UT | $225,400 | -1.6% |
| San Antonio | TX | $143,400 | -5.5% |
| San Diego-Carlsbad-San Marcos | CA | $332,800 | -36.4% |
| San Francisco-Oakland-Fremont | CA | $487,100 | -37.4% |
| San Jose-Sunnyvale-Santa Clara | CA | $525,000 | -37.7% |
| Sarasota-Bradenton-Venice | FL | $178,100 | -35.0% |
| Seattle-Tacoma-Bellevue | WA | $325,900 | -13.7% |
| Shreveport-Bossier City | LA | $139,200 | 2.8% |
| Sioux Falls | SD | $142,400 | Unch |
| South Bend-Mishawaka | IN | $80,800 | -6.4% |
| Spartanburg | SC | $120,800 | -0.8% |
| Spokane | WA | $185,900 | -4.2% |
| Springfield | IL | $96,700 | -11.0% |
| Springfield | MA | $186,400 | -9.7% |
| Springfield | MO | $117,100 | -3.0% |
| Syracuse | NY | $114,100 | -9.7% |
| Tallahassee | FL | $150,100 | -17.0% |
| Tampa-St.Petersburg-Clearwater | FL | $151,500 | -24.9% |
| Toledo | OH | $75,600 | -27.3% |
| Topeka | KS | $104,800 | -6.7% |
| Trenton-Ewing | NJ | $247,800 | -19.2% |
| Tucson | AZ | $185,900 | -21.2% |
| Tulsa | OK | N/A | N/A |
| Virginia Beach-Norfolk-Newport News | VA-NC | $222,000 | -5.9% |
| Washington-Arlington-Alexandria | DC-VA-MD-WV | $295,100 | -26.2% |
| Waterloo/Cedar Falls | IA | $105,200 | -8.8% |
| Wichita | KS | $118,200 | 3.9% |
| Worcester | MA | $217,000 | -16.2% |
| Yakima | WA | $145,900 | -14.4% |
| Youngstown-Warren-Boardman | OH-PA | $61,700 | -0.15% |
| U.S. | $180,100 | -12.4% | |
| NE | $248,800 | -4.7% | |
| MW | $139,500 | -10.6% | |
| SO | $158,300 | -7.5% | |
| WE | $243,200 | -25.1% |
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
© 2008 National Association of REALTORS®
| MetroArea | State | MedianPrice 4Q2008 | %Change (1-yr) |
|---|---|---|---|
| Albuquerque | NM | $158,900 | 8.6% |
| Atlanta-Sandy Springs-Marietta | GA | N/A | N/A |
| Austin-Round Rock | TX | $155,100 | -10.5% |
| Baltimore-Towson | MD | $222,800 | -5.4% |
| Bismarck | ND | $134,900 | 8.0% |
| Boston-Cambridge-Quincy | MA-NH | $272,900 | -8.1% |
| Boulder | CO | $204,800 | -3.7% |
| Bridgeport-Stamford-Norwalk | CT | $232,900 | -10.5% |
| Cape Coral-Fort Myers | FL | $169,900 | -16.0% |
| Chicago-Naperville-Joliet | IL | $209,400 | -11.4% |
| Cincinnati-Middletown | OH-KY-IN | $122,500 | -2.5% |
| Cleveland-Elyria-Mentor | OH | N/A | N/A |
| Colorado Springs | CO | $140,000 | -3.2% |
| Columbus | OH | $118,900 | -9.9% |
| Dallas-Fort Worth-Arlington | TX | $149,500 | 14.1% |
| Greensboro-High Point | NC | $108,000 | -7.5% |
| Hartford-West Hartford-East Hartford | CT | $163,800 | -9.3% |
| Honolulu | HI | $315,600 | -1.4% |
| Houston-Baytown-Sugar Land | TX | $124,500 | -8.1% |
| Indianapolis | IN | $117,500 | 0.7% |
| Jacksonville | FL | $126,200 | -11.6% |
| Knoxville | TN | $145,900 | -9.3% |
| Las Vegas-Paradise | NV | $91,200 | -48.9% |
| Los Angeles-Long Beach-Santa Ana | CA | $240,600 | -33.8% |
| Louisville | KY-IN | $116,100 | -7.5% |
| Madison | WI | $163,900 | -8.7% |
| Manchester-Nashua | NH | $174,900 | N/A |
| Miami-Fort Lauderdale-Miami Beach | FL | $132,900 | -31.6% |
| Milwaukee-Waukesha-West Allis | WI | $172,400 | 0.2% |
| New Haven-Milford | CT | $169,600 | -6.2% |
| New Orleans-Metairie-Kenner | LA | $171,500 | -1.0% |
| Norwich-New London | CT | $160,000 | -12.4% |
| New York-Wayne-White Plains | NY-NJ | $292,600 | -5.9% |
| NY: Newark-Union | NJ-PA | $279,300 | -11.4% |
| NY:Edison | NJ | $262,800 | -4.2% |
| NY:Nassau-Suffolk | NY | $231,800 | -7.0% |
| Palm Bay-Melbourne-Titusville | FL | $88,500 | -29.0% |
| Philadelphia-Camden-Wilmington | PA-NJ-DE-MD | $210,200 | 10.2% |
| Phoenix-Mesa-Scottsdale | AZ | $138,900 | -24.1% |
| Portland-South Portland-Biddeford | ME | $199,200 | -1.0% |
| Portland-Vancouver-Beaverton | OR-WA | $194,400 | -6.2% |
| Providence-New Bedford-Fall River | RI-MA | $202,800 | -8.8% |
| Reno-Sparks | NV | $114,100 | -39.0% |
| Richmond | VA | $173,300 | -7.7% |
| Riverside-San Bernardino-Ontario | CA | N/A | N/A |
| Rochester | NY | $109,100 | -11.1% |
| Sacramento--Arden-Arcade--Roseville | CA | $94,700 | -55.8% |
| Salt Lake City | UT | $156,300 | -4.3% |
| San Diego-Carlsbad-San Marcos | CA | $190,100 | -41.9% |
| San Francisco-Oakland-Fremont | CA | $391,900 | -34.2% |
| Sarasota-Bradenton-Venice | FL | $216,600 | -20.4% |
| Springfield | MA | $149,500 | -2.3% |
| Syracuse | NY | N/A | N/A |
| Tampa-St. Petersburg-Clearwater | FL | $125,000 | -27.1% |
| Toledo | OH | $153,900 | 11.4% |
| Trenton-Ewing | NJ | $219,100 | -10.3% |
| Tucson | AZ | $115,500 | -9.8% |
| Virginia Beach-Norfolk-Newport News | VA-NC | $168,600 | -3.9% |
| Washington-Arlington-Alexandria | DC-VA-MD-WV | $242,100 | -16.0% |
| Wichita | KS | $111,400 | 1.4% |
| Worcester | MA | $153,500 | -27.9% |
| U.S. | $186,000 | -15.8% | |
| NE | $232,200 | -6.3% | |
| MW | $173,900 | -10.1% | |
| SO | $150,000 | -17.0% | |
| WE | $175,800 | -30.1% |
*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 | TotalSales | %Change (1-yr) |
|---|---|---|
| ALABAMA | $68,800 | -35.1% |
| ALASKA | $20,000 | -16.7% |
| ARIZONA | $116,400 | 42.6% |
| ARKANSAS | $59,200 | -20.9% |
| CALIFORNIA | $563,600 | 84.7% |
| COLORADO | $100,000 | -9.7% |
| CONNECTICUT | $43,200 | -20.6% |
| DELAWARE | $11,600 | -14.7% |
| District of Columbia | $6,800 | -15.0% |
| FLORIDA | $273,200 | 12.5% |
| GEORGIA | $168,400 | -9.9% |
| HAWAII | $16,800 | -30.0% |
| IDAHO | $30,900 | -21.8% |
| ILLINOIS | $165,600 | -22.8% |
| INDIANA | $105,200 | -19.8% |
| IOWA | $57,200 | -5.9% |
| KANSAS | $55,200 | -17.9% |
| KENTUCKY | $68,400 | -19.0% |
| LOUISIANA | $46,800 | -29.1% |
| MAINE | $20,000 | -13.8% |
| MARYLAND | $58,400 | -14.6% |
| MASSACHUSETTS | $103,200 | -6.9% |
| MICHIGAN | $153,600 | -12.1% |
| MINNESOTA | $95,600 | 7.2% |
| MISSISSIPPI | $44,400 | -22.9% |
| MISSOURI | $94,000 | -13.6% |
| MONTANA | $17,600 | -21.4% |
| NEBRASKA | $28,800 | -8.9% |
| NEVADA | $80,400 | 133.7% |
| NEW HAMPSHIRE | $18,400 | N/A |
| NEW JERSEY | $101,100 | -15.3% |
| NEW MEXICO | $27,200 | -20.9% |
| NEW YORK | $237,200 | -15.2% |
| NORTH CAROLINA | $121,200 | -34.7% |
| NORTH DAKOTA | $11,200 | -22.2% |
| OHIO | $217,600 | -7.6% |
| OKLAHOMA | $80,800 | -16.5% |
| OREGON | $49,200 | -8.9% |
| PENNSYLVANIA | $178,800 | -9.7% |
| RHODE ISLAND | $12,400 | -8.8% |
| SOUTH CAROLINA | $63,200 | -31.0% |
| SOUTH DAKOTA | $16,000 | -18.4% |
| TENNESSEE | $102,800 | -26.1% |
| TEXAS | $421,200 | -18.1% |
| UTAH | $26,000 | -24.4% |
| VERMONT | $8,400 | -34.4% |
| VIRGINIA | $105,200 | 3.1% |
| WASHINGTON | $76,800 | -35.6% |
| WEST VIRGINIA | $22,800 | -17.4% |
| WISCONSIN | $79,600 | -17.4% |
| WYOMING | $7,200 | -14.3% |
| United States | $4,700,000 | -5.9% |
| Northeast | $760,000 | -13.9% |
| Midwest | $1,040,000 | -12.4% |
| South | $1,733,000 | -13.4% |
| West | $1,173,000 | 26.5% |
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.
As an expert in real estate and housing market trends, I find the information in the provided article to be both insightful and reflective of the challenges faced by the housing market during the fourth quarter of 2008. The comprehensive data released by the National Association of Realtors (NAR) sheds light on various aspects, and I'll break down the key concepts used in the article.
-
Home Prices Decline Significantly:
- The article reports a substantial decline in home prices during the fourth quarter of 2008, marking the largest year-over-year drop since the NAR began comprehensive record-keeping in 1979. The median price for a U.S. home fell by 12.4%, from $205,700 in Q4 2007 to $180,100 in Q4 2008.
-
Record Decline in 2008:
- The year 2008 witnessed a record decline in median home prices, with a 9.5% drop from $217,900 in 2007 to $197,100 in 2008. This was a significant contrast to the relatively modest 1.6% decline between 2006 and 2007.
-
Impact of Distressed Properties:
- Distressed properties, including foreclosures and short sales, constituted 45% of all deals during this period. This influx of distressed properties influenced market dynamics, contributing to both increased sales volume in some regions and a decline in median prices.
-
Regional Variations:
- The article highlights regional variations in home price changes. For instance, areas such as Cape Coral-Ft. Myers, Florida, and Riverside-San Bernardino, California, experienced substantial price drops, while the Beaumont-Port Arthur area in Texas saw a notable increase of 16.7%.
-
Factors Influencing Price Drops:
- Lawrence Yun, chief economist for NAR, identifies several factors contributing to the decline in home prices, including the prevalence of distressed sales, frozen jumbo-mortgage lending markets affecting higher-priced homes, and banks willing to slash prices to move inventory.
-
Impact of Distressed Sales on Prices:
- Distressed sales, often associated with low- and moderate-income housing, were prevalent in the market. In areas like Orange County, California, lower-priced homes saw more sales activity, contributing to a skewed median home sales price for the entire area.
-
Market Response to Discounted Prices:
- Despite the challenges, the article suggests that buyers are responding positively to discounted prices, absorbing excess inventory. First-time homebuyers, who were previously priced out during the boom, are entering the market.
-
Hope for Stimulus Measures:
- The NAR expresses hope that stimulus measures, particularly a proposed homebuyer's tax credit, could provide an extra incentive for buyers. The article anticipates that such measures could lead to a quick lift in home sales during the critical spring home-buying season.
In summary, the provided information reflects the complex interplay of factors contributing to the decline in home prices during the specified period and underscores the regional nuances within the broader national housing market.
