National Association of Realtors released the numbers for 2009 quarter 1 and the median Toledo house price was $65,500. One year ago it was $89,700. Over the past three years the median value has dropped from $110k in 2006, to $106.6k in 2007, and $91.2k in 2008. This is bad news for Toledo home owners and let us not forget who brought us here. Read the press release and get the numbers below.
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First-time home buyers responding to improved affordability conditions, and lower prices of foreclosures and short sales, impacted metropolitan area median home prices in the first quarter, while existing-home sales remained sluggish in many parts of the country, according to the latest survey by the National Association of Realtors®.
With first-time buyers accounting for half of all purchases during the first quarter, 134 out of 152 metropolitan statistical areas1 reported lower median existing single-family home prices in comparison with the first quarter of 2008, while 18 metros had price gains.
Many buyers sought deeply discounted distressed sales – foreclosures and short sales – which accounted for nearly half of transactions in the first quarter and weighed down median home prices in most markets.
The national median existing single-family price was $169,000, which is 13.8 percent below the first quarter of 2008 when conditions were closer to normal. The median is where half sold for more and half sold for less, but distressed homes typically are selling for 20 percent less than traditional homes and are downwardly skewing median prices.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are two levels of pricing in the current market. “Traditional homes in good condition have held their value much better, so owners shouldn’t be overly concerned about median prices. Most sellers can expect a good return if they’ve been in their home for a normal period of homeownership and haven’t excessively tapped their equity,” he said.
“Given the unusual mix of conditions around the country, the expertise and negotiating skills of a Realtor® have never been more important,” McMillan said. “Unparalleled knowledge of local markets is crucial for consumers.”
Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate2 of 4.59 million units in the first quarter, down 3.2 percent from 4.74 million units in the fourth quarter, and are 6.8 percent below the 4.93 million-unit pace in the first quarter of 2008.
Seventeen states experienced sales increases from the fourth quarter, and six states were higher than a year ago; complete data for one state was not available. Sales in the first quarter do not reflect an impact from the first-time home buyer tax credit.
Lawrence Yun, NAR chief economist, sees the market in a lull before an upturn. “Over the past couple months, contract activity for home sales, buyer traffic and inquiries about the $8,000 tax credit have all increased,” he said.
“Close to 455,000 buyers purchased their first home during the first quarter, and those are likely just the first wave of new buyers coming into the market – they’re critical for a housing recovery,” Yun said. “Housing affordability conditions are at record high levels and we expect a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 5.06 percent in the first quarter from 5.86 percent in the fourth quarter; the rate was 5.88 percent in the first quarter of 2008.
Yun said some areas showed dramatic drops in home prices. “In areas with the biggest price declines, we also see much higher levels of distressed sales which are distorting the data,” Yun said. “We are very much in a bifurcated market with sharp differences between foreclosures and short sales on one hand, and traditional homes on the other. In many cases homes are selling below replacement construction costs, which speaks to great value in the current market.”
There were bright spots in the first quarter. The largest sales gain from a year ago was in Nevada, up 116.8 percent, followed by California which rose 80.6 percent, Arizona, up 50.2 percent, and Florida with a 25.0 percent increase. Virginia and Minnesota also experienced double-digit sales increases.
The largest single-family home price increase in the first quarter was in the Cumberland area of Maryland and West Virginia, where the median price of $114,900 rose 21.1 percent from a year ago. Next was the Davenport-Moline-Rock Island area of Iowa and Illinois at $100,300, up 13.8 percent from the first quarter of 2008, followed by Columbia, Mo., where the median price increased 6.0 percent to $152,600.
Median first-quarter metro area single-family home prices ranged from a very affordable $30,300 in the Saginaw-Saginaw Township North area of Michigan to $570,000 in Honolulu. The second most expensive area was the San Jose-Sunnyvale-Santa Clara area of California, at $450,000, followed by the Anaheim-Santa Ana-Irvine area of California at $435,800.
Other affordable markets include Akron, Ohio, at $50,100, and the Youngstown-Warren-Boardman area of Ohio and Pennsylvania at $51,200.
In the condo sector, metro area condominium and cooperative prices – covering changes in 56 metro areas – showed the national median existing-condo price was $172,800 in the first quarter, down 20.2 percent from the first quarter of 2008. Five metros showed annual increases in the median condo price and 51 areas had declines.
The strongest condo price increases were in Portland-South Portland-Biddeford, Maine, at $196,900, up 11.2 percent, followed by the Wichita, Kan., area, where the median condo price of $113,900 rose 6.8 percent from the first quarter of 2008, and Bismarck, N.D., at $132,400, up 6.0 percent.
Metro area median existing-condo prices in the first quarter ranged from $75,200 in Las Vegas-Paradise, Nev., to $345,900 in San Francisco-Oakland-Fremont. The second most expensive reported condo market was Honolulu at $300,000, followed by the New York-Wayne-White Plains area of New York and New Jersey at $282,300.
Other affordable condo markets include the Palm Bay-Melbourne-Titusville area of Florida at $90,600 in the first quarter, and the Sacramento-Arden-Arcade-Roseville area of California at $93,800.
Regionally, existing-home sales in the Northeast fell 10.3 percent in the first quarter to a pace of 693,000 units and are 20.1 percent below a year ago.
The median existing single-family home price in the Northeast declined 15.9 percent to $235,500 in the first quarter from the same period in 2008. The best gain in the region was in Syracuse, N.Y., where the median price of $113,700 rose 3.1 percent from the first quarter of 2008, followed by Buffalo-Niagara Falls, N.Y., at $99,200, up 2.7 percent, and Binghamton, N.Y., where the median rose 0.5 percent to $110,300.
In the Midwest, existing-home sales slipped 2.2 percent in the first quarter to a pace of 1.04 million and are 13.1 percent below a year ago.
The median existing single-family home price in the Midwest was down 6.8 percent to $132,400 in the first quarter from the same period in 2008. After Davenport-Moline-Rock Island and Columbia, the next strongest metro price increase in the region was in Springfield, Ill., where the median price of $111,400 was 3.9 percent higher than a year ago, followed by Topeka, Kan., at $106,500, up 3.1 percent, and Bloomington-Normal, Ill., at $153,800, up 1.9 percent.
In the South, existing-home sales declined 2.5 percent in the first quarter to an annual rate of 1.70 million and are 12.7 percent lower than the same period in 2008.
The median existing single-family home price in the South was $146,600 in the first quarter, down 10.8 percent from a year earlier. After Cumberland, the strongest price increase in the region was in Beaumont-Port Arthur, Texas, with a 5.0 percent gain to $129,100, followed by Oklahoma City, at $129,900, up 4.0 percent, and Shreveport-Bossier City, La., at $136,000, up 3.4 percent.
Existing-home sales in the West slipped 0.9 percent in the first quarter to an annual rate of 1.16 million but are 24.3 percent above a year ago.
The median existing single-family home price in the West was $237,600 in the first quarter, which is 19.8 percent below the first quarter of 2008. The strongest price gain in the West was in the Salt Lake City area, where the median price of $230,100 rose 1.9 percent from a year earlier, followed by Farmington, N.M., at $191,200, up 0.7 percent.
Get the numbers at:
http://www.realtor.org/research/research/metroprice
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Data tables for both metro area home prices and state existing-home sales are posted at: www.realtor.org/research/research/metroprice. For areas not covered in the tables, contact your local association of Realtors®.
1Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. A list of counties included in MSA definitions is available at: www.census.gov/population/estimates/metro-city/0312msa.txt
Regional median home prices include rural areas and samples of many smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter
comparisons do not compensate for seasonal changes, especially for the timing of family
buying patterns.
NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series was launched at the beginning of 2006, with several years of historic data.
Because there is a concentration of condos in high-cost metro areas, the national median condo price sometimes is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report.
2The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single family, townhomes, condominiums and co-operative housing. NAR began tracking the state sales series in 1981.
Seasonally adjusted rates are used in reporting quarterly data to factor out seasonal variations in resale activity. For example, sales volume normally is higher in the summer and relatively light in winter, primarily because of differences in the weather and household buying patterns.
Each May when first quarter data is published, NAR Research incorporates a review of seasonal activity factors and fine-tunes historic data for the previous three years based on the most recent findings. Revisions have been made to quarterly seasonally adjusted annual sales rates for 2006 through 2008; there are no revisions to price data beyond the normal quarterly revisions.
Second quarter metro area home price and state resale data will be released August 12.
Bush's fault.
*snicker*
makes the case, they better read the release. There are areas that have increases in prices. I would love for someone to explain that, which is why we need to hold our local elected officials accountable.
Pffft....democrats are never at fault for anything....it's allways someone elses fault...
Local elected officials convinced people to buy houses using larger and larger fractions of credit, all through the 20th Century? That's news to me, Chris. So perhaps I've misunderstood what you're saying. What do local elected officials have to do about the ruinous trend of advancing mortgages?
At any rate, the national trend for house prices MUST fall. Lending for housing got so extremely out of control that that's the only rational conclusion. So although there may be minor areas of rising or plateauing prices, the overall trend must be DOWN for the majority. That will put more people "underwater" on their mortgages, and that will make more of them walk away from those mortgages, causing more foreclosures, more abandoned housing, hence furthering the effect of depressing prices.
Since this is the Great Depression II, this makes perfect sense. In a Depression, prices generally fall. Wages also fall, which reinforces the fall in consumer prices. I welcome this, of course. We had a period of significant inflation for about a generation, and we effectively tried to break the middle class with debt like it was a dry stick. What's happening now is a necessary correction, and as housing prices fall, affordability increases, AND THAT'S A GREAT THING.
but not every area has fallen regardless of the mortgage situation. One has to wonder why? Could it be that our local officials became so in love with the status quo and the power brokers who encouraged it that they became lazy and did not try to differentiate themselves further? Look no further than the intermodal discussion to see something that was not pursued for so long. If this area was a desirable place to live, Toledo too would be up like some other parts of the country.
Er, Chris, not every area has fallen since statistics say that must happen. I think you're searching for a cause that generally doesn't apply.
If anything, falling house prices were caused by DEVELOPERS, like that shitbag Dillin. The link to local politicians is through ECONOMIC DEVELOPMENT (i.e. a scam) and zoning and all the rest of that land management crap. Hand in hand, the developers overbuilt and the politicians let them do it. Of course, if a developer has some abysmally stupid set of banks behind him, why should the local pols stand in the way? The moron will crash and burn eventually.
The intermodal thing is something else entirely. That's a COMMERCIAL/INDUSTRIAL development project. Alas, maybe it was put on hold for something silly like Czarty wanting his name on it. But it could well have been put on hold for the now-usual reasoning of excessive corporate welfare. You well know by now how far politicians go when "asking" companies to move into the area. They end up arranging outright corporate welfare. And even then: Nobody may be interested. I've said in the past that we should NOT expect to have another Silicon Valley here in NWO since there is already a SV in the nation. It could well be that there's just not enough economic activity going on to justify ANYONE putting an intermodal site around here.
And finally, Toledo is NOT a "desirable" place to live. About all we can advertise is a certain cheapness of living, but that's not a draw at all for the "knowledge workers" that pols love to think will swarm into any economic-development zone. So in reality, we should be advertising for low-end factories and service providers to come here for the cheap labor. Ha! Czarty will never advocate that. (And looking at what happened during the Convergys Fiasco, we can't even sustain THAT.)
Nice post, GZ.
From Chris:Over the past three years the median value has dropped from $110k in 2006, to $106.6k in 2007, and $91.2k in 2008. This is bad news for Toledo home owners
Not necessarily true. If my home is paid for, meaning I actually own my home and do not have a mortgage against it, I really don't care about home prices in general. In fact, if property values fall, my taxes may eventually fall to a reasonable level.
Is that too much to hope for?
Toledo is not the hole in the doughnut, so to speak. Property values are falling all over the nation with a few exceptions. If you want to assign blame to any of this, you can being with the State of Ohio and work your way down to Lucas county, and finally, at the bottom of the gravel pit, you can blame the man with the bulldozer and the megaphone.
Mad Jack
Mad Jack's Shack
As usual, Chris, you filter all news through your ideological sieve. Let's see, according to the article, one of the states where housing prices rose the most is that bastion of conservatism, every Neo-con's favorite state -- California!! Why is it that the Republican governor, whom Neo-cons like you revile, and the cities there which are mostly run by Democratic mayors and with Democrats dominating their city councils, are so successful? Some of the very highest home and condo prices are in [Turn away from the screen, Chris. This just may make you vomit] San Francisco! Is there a more liberal-dominated city anywhere this side of Amsterdam? Get real, Chris!
As I've said before on this topic, there is enough blame to go around for all of the leaders in Toledo. This includes government, but extends to business and labor as well. What we have to concentrate upon is where we go from here. BTW...could the problem with locating an intermodal site in this area have anything to do with the downturn in the economy? Huh? I certainly haven't seen anything where any local governmental leaders have opposed the intermodal project. Instead of pointing fingers of blame, shouldn't we concentrate on building a better future for Toledo?
Here's just one idea. Why hasn't anyone thought about marketing Toledo as a great location for high tech firms. We are in the center of so many good to great two and four year colleges and universities! Within about a one hour drive are UT, BGSU, Lourdes, Owens, Terra, Monroe CC, UD-Mercy, Oakland St., U of M., Eastern Michigan, Defiance, Findlay, Heidelberg. This is off the "top of my head". I may have left a few out. Wouldn't this be a viable path for jobs which have a strong potential for the future? And it doesn't hurt that we are in the center of road, water, rail, and air transportation.
the perfect example of people who give our local leaders a pass. Thanks Dale. You know it is time that our leaders own up to the horrible mistakes and poor governance. Passing the buck and making excuses has got this area into the shape it is in. Time to end it. But there people keep making excuses too on how it is everyone else's fault or how it is this and that and we are not that bad ect. We also hear "Oh if we just do this, things will change." Well we have bought enough of that crap and it is time to demand a refund.
BTW where did I say a party above? Looks like you are the one with the "seive". But with the poor track record of the leadership here, most of which are Democrats, it is getting hard to defend especially since other areas of the country are doing a heck of a lot better. That is why people, like yourself, trot out the "let's not point fingers," which is quite a funny defense. Our representative democracy was established to have fingers pointed if the person sucks. Because this area has not pointed fingers is what go us into this mess.
BTW, your basic ideas are sort of like suggesting let's close the door after the horse got out. Since you have to suggest such elementary things, which should have been done 15/20 years ago, is an indictment of the current leadership. This means you also see how bad things have become. Welcome to the club Dale.
Chris,
I guess you just ignore anything that doesn't fit your position. You make no reference to my comments about San Francisco. I guess that you did turn away when I suggested that to you. How can such a liberal bastion be so successful? Furthermore, I stated, "I've said before on this topic, there is enough blame to go around for all of the leaders in Toledo. This includes government, but extends to business and labor as well." That seems like a strong criticism to me!
I'll go further. Leaders in Toledo had and have a great product to sell. They have been short-sighted, parochial, and stuck in old paradigms about economic growth. Toledo is in the center of a large population base. Toledo has excellent transportation. Toledo is near many two and four year colleges and universities. Toledoans have proved to be hardworking people. What else do you need to sell the city? We do have one serious problem -- high utility rates. That could have been solved 16 years ago, if we had listened to Mike Ferner and started a municipal electric company. But we all know Toledo's leaders. Mike was condemned and lost to Carty because he didn't belong to a church! Just think, if Carty had never been elected Mayor...
As far as being welcomed to the club by you, I was in the club before you were born! The difference between you and me is that I'm looking forward and looking for solutions. You're looking to the past and looking to assign blame. Get over it, Chris!! Move on!!
It seems the same amount of people who are buying homes in Toledo are also buying GM stock.
MikeyA
HAHAHAHAHA!