Today, I received the NAR (National Association of Realtors) online newsletter. In it was an article about the slowing housing market. "According to a report released by Standard & Poors/Case -Shiller, declines in home prices in twenty U.S. metropolitan areas continued in the 12 months ending in March as the supply of homes exceeded demand." Although all twenty cities were not listed, Detroit and San Diego were two cities that showed a decrease in home prices. Seattle and Charlotte were two cities that showed increases in home prices.
According to the report, "home values, nationally, dropped 1.4 percent from March 2006, indicating that sellers had to reduce prices to lure buyers into the market for both new and previously-owned properties."
The report continued, saying that "rising foreclosures and defaults on subprime mortgages may add to the number of unsold homes, delaying the recovery from the slump."
"According to the National Association of Realtors, the median price of an existing home fell 0.8 percent in April from a year earlier to $220,000."
Prices of new homes have also dropped. "Commerce Department figures on May 24 showed a median price of a new home dropped eleven percent last month from April 2006, the largest decline sine 1970, to $229,100."