USA: Average House Price Falls To $215,000

The American median existing-home price for all housing types was $215,100 (£108,150) in June, down 6.1 percent from a year ago when the median was $229,000 (£115,200). American existing-home sales – including single-family, townhouses, condominiums and co-ops – fell 2.6 percent to a seasonally adjusted annual rate of 4.86 million units, 15.5 percent lower than the rate in June 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate, said there is something of a quandary in the current market. “A recent online survey of Realtors shows nearly a quarter of potential home buyers are waiting on the sidelines,” he said. “However, timing the market can be very tricky, which is why home buyers should always have a long-term view to build wealth.”

Total housing inventory at the end of June rose 0.2 percent which represents an 11.1 month supply at the current sales pace, up from a 10.8 month supply in May.

Lawrence Yun, NAR chief economist, said first-time home buyers are critical to the health of the housing market. “About four in 10 homes are purchased by first-time buyers, which frees existing owners to trade up,” Yun said. “With many potential first-time home buyers on the sidelines, a first-time buyer tax credit would have a significant positive impact on both housing and the economy. Combined with permanent increases to mortgage loan limits and enhancing the FHA loan program, the housing stimulus package working its way through Congress would go a long way toward helping consumers and boosting the overall economy.”

Yun said there is a downward distortion in the price data. “With short sales and foreclosures accounting for approximately one-third of transactions, it’s hard to make an apples-to-apples comparison with a year ago when they were only a minor portion of the market,” he said.

Despite the overall sales decline, unpublished snapshot data shows existing-home sales rising significantly from a year ago in Bakersfield, California; Fort Myers, Florida; and Las Vegas.

“Sales are now beginning to pick up in Orlando, Florida, Phoenix, and Oakland, California,” Yun said. “Interestingly, sales fell in Atlanta, Houston, and Kansas City, Missouri, despite affordable home prices and solid local employment conditions.”

The median existing single-family home price was $213,800 (£107,500) in June, which is down 6.7 percent from a year ago.

The median existing condo price was $224,200 (£112,800) in June, which is 2.2 percent lower than June 2007.

West
Existing-home sales in the West rose 1.0 percent in June to a pace of 1.03 million but are 6.4 percent lower than a year ago. The median price in the West was $288,400 (£145,100), which is 17.2 percent below June 2007.

South
In the South, existing-home sales fell 3.1 percent to an annual rate of 1.85 million in June, and are 18.1 percent below June 2007. The median price in the South was $185,300 (£93,200), down 2.4 percent from a year ago.

Midwest
Existing-home sales in the Midwest declined 3.4 percent to an annual pace of 1.12 million in June, and are 17.6 percent below a year ago. The median price in the Midwest was $175,300 (£88,200), up 2.8 percent from June 2007.

Northeast
In the Northeast, existing-home sales fell 6.6 percent to an annual rate of 850,000 in June, and are 15.8 percent below June 2007. The median price in the Northeast was $256,700 (£129,100), down 12.6 percent from June 2007.
exchange rate used £1 = $1.99