Real Estate Home prices moderating in some areas

The National Association of Real Estate Realtors says home prices are moderating in many metro areas. During the third quarter, 123 out of 153 metropolitan statistical areas reported lower median existing Real Estate single-family home prices in comparison with the third quarter of 2008, while 30 areas had price gains. The national median existing single-family price was $177,900 (11.2 percent below the third quarter of 2008); the median is where half sold for more and half sold for less. Distressed Real Estate sales – foreclosures and short sales – accounted for 30 percent of transactions in the third quarter, which continued to weigh down median home prices because they sell at a discount relative to traditional real estate homes. “The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market,” said Lawrence Yun, NAR chief economist. “Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future Real Estate foreclosures.”