Home-Price Decline Spreads

Wall Street Journal (05/14/08) P. C21; Corkery, Michael
The National Association of Realtors reports a 7.7-percent drop in the national median home price to $196,300 in the first quarter from the same period in 2007. Approximately 100 metropolitan areas reported price declines, marking a nearly 30-year high, while just 48 metro areas recorded price gains. Regionally, the median resale price fell 12.3 percent to $296,300 in the West and 7.5 percent to $164,200 in the South but edged up 3.2 percent to $280,000 in the Northeast. According to NAR chief economist Lawrence Yun, foreclosures and a drop in high-end sales due to decreased availability of jumbo mortgages are distorting residential values. Luxury home builder Toll Brothers Inc. reported a 17-percent drop in its average home price to $590,000 in its second quarter, which analyst Ivy Zelman attributes to the inability of buyers to sell their current residences.