Record Foreclosures Drive Down Home Prices
A record numbers of foreclosures helped drive down prices 7.6%, according to NAR.
In fact, foreclosures and short sales accounted for about one third of all existing homes sales.
Real estate prices continued to post steep year-over-year declines during the three months ended June 30, according to a new report from the National Association of Realtors (NAR).
Nationwide, the median existing single family home price plunged 7.6%
- Sacramento, Calif. prices plunged 35.6% year-over-year to
- $229,500. Cape Coral, Fla. saw a decline of 33.1%,
- prices in Riverside, Calif. dropped 32.7%,
- Los Angeles prices are down 29.6%.
- Las Vegas prices fell 23.6%
- Phoenix was down 22.5%
There were bright spots in the NAR report
Yakima, Wash. posted the largest price increase, up 8.9%
Binghamton, N.Y. was second with a price jump of 8.7% to $120,900
Condominium saw only a 3% drop nationwide , much smaller price declines than single family homes.
I expect that areas that have higher foreclosures will struggle until the excess overhang of foreclosed homes and short sales is reduced.
Areas that saw less development during the boom , will fare much better and likely near or at a bottom.
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