Metro Housing Prices Continue to Soften while Sales Improve

The National Association of Realtors® third quarter report shows that home prices were up from the third quarter of 2010 in only 39 of 150 MSAs.  The median home price was $169,500, down 4.7% from $177,800 in the 3^rd quarter of 2010.

Lawrence Yun, chief economist for the NAR commented that as sales improve so will housing prices. Sales figures were flat for the 3^rd quarter at a seasonally adjusted -.1% for existing single-family homes and condos.  Despite a flat third quarter the annual sales figures improved in every state and the District of Columbia by 17%.

NAR’s affordability index stands at a highly affordable 183.8, the second best rating after the first quarter of 2011 since the index was started in 1970.

All the factors are present for a housing come-back—except for consumer confidence and a strong economy.  Housing is at historic affordability levels. Interest rates are at their lowest ever.  The cost of renting is rising rapidly.  NAR president, Ron Phipps said, “For people with secure jobs, good credit and long-term plans, today’s conditions will be remembered as a golden opportunity to enter the housing market.”