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NAR: Home Values Fell -15.1% Year Over Year In July

By
Real Estate Broker/Owner

With all of the talk about a housing bottom, I thought I would point out a small little statistic that the media continues to overlook...home values are still falling.  And they are still falling in all four regions that the NAR tracks. 

Specifically, the median home value fell by -15.0% in the Northeast, -5.9% in the Midwest, -7.1% in the South, and -28% in the West.

According to the most recent NAR existing home sales report, the national median home value fell -15.1% from July of 2008 to July of 2009. 

Here is what the year over year percentage change in the median home value has looked like over the past several months according to the NAR:

Jun 2008:  -6.1%

Jul 2008:  -7.1%

Aug 2008:  -9.5%

Sep 2008:  -9.0%

Oct 2008:  -11.3%

Nov 2008:  -13.2%

Dec 2008:  -15.3%

Jan 2009:  -14.8%

Feb 2009:  -15.5%

Mar 2009:  -12.4%

Apr 2009:  -15.4%

May 2009:  -16.8%

Jun 2009:   -15.4%

Jul 2009:   -15.1%

While the argument can be made that the "pace" of home value declines is slowing, and there are plenty of people who will try to make that argument, those same people need to also account for the fact that the pace of foreclosure filings just set a new record in July, according to RealtyTrac.  The trend is for deeper and prolonged property value declines in the absence of a real housing stimulus.

 

 

Comments(4)

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June Piper-Brandon
Coldwell Banker Realty - Baltimore, MD
Creating Generational Wealth Through Homeownership

Prices did drop over the last year, but prices were artificially inflated anyway, so I think houses are now priced accordingly and the increase in the volume of sales shows that to be true.  

Aug 22, 2009 04:31 PM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Everyone is doing cartwheels, but they are not looking at the trends.  Overall fewer sales than even before the peak in the market, lower home prices, and most of the sales are still foreclosures and distressed pricing.  Not good for homeowners.

Aug 23, 2009 01:59 AM
Mark MacKenzie
Phoenix, AZ

June:  Good points, but the problem is that there are now tens of millions of homeowners that owe more than what their home is worth.  This number is likely to increase over the next two to three years.  It presents a significant headwind to the banking system and broader economy.

Jim:  This is great news for buyers, but terrible news for homeowners.  There are only about 2 million people each year that buy a home for the first time.  There are tens of millions of homeowners, and banks, being negatively impacted by this.

Aug 23, 2009 08:54 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

You are so right. I would hate to be a seller in this market.

Aug 24, 2009 01:18 AM