Home-price picture across the U.S. is uneven
The national median home price rose 7.3%, but the variation nationwide was from minus 12.9% to plus 29.2%. Affordability declined slightly.
We reported last week that the median national home price rose 7.3% in the second quarter of 2012 compared with the same period a year ago. But that statistic hides the real variation in local home prices.
The range nationwide was from a drop of 12.9% to an increase of 29.2%, according to data from the National Association of Realtors. That's a pretty big range. But once you take out the 10 highest and 10 lowest, the price change fell in a narrower range: minus 4.4% to plus 12.3%.
The rise in home prices has caused affordability of new and existing homes to fall slightly, according to separate data from the National Association of Home Builders. In the second quarter of 2012, 73.8% of new and existing homes sold were affordable to families earning the national median income of $65,000. That was down from a record high of 77.5% in the first quarter of 2012.
In 110 of the 147 markets measured by the NAR, prices in the second quarter, compared with the same period last year. In 34 of the markets, prices fell. In three metro areas, prices stayed the same.
The five markets that showed the greatest increase in home values year-over-year were:
- Detroit-Warren-Livonia, Mich., up 29.2%. The median home price in that area stands at $60,200.
- Phoenix-Mesa-Scottsdale, Ariz., up 29%. The median home price was $148,400.
- Boise City-Nampa, Idaho, up 27%. The median home price was $138,200.
- Florence, S.C., up 20.5%. The median home price was $136,100.
- Akron, Ohio, up 16.5%. The median home price was $116,700.
The next five were Buffalo-Niagara Falls, N.Y., up 16.5%; Bismarck, N.D., up 14.8%; Cumberland, Md.-W.Va., up 14.7%; Cape Coral-Fort Myers, Fla., up 14.4%; and Peoria, Ill., up 12.3%.
The five markets that showed the greatest decrease in values were:
- Bridgeport-Stamford-Norwalk, Conn., down 12.9%. Median price was $374,900.
- Edison, N.J., down 9.5%. Median price was $297,500.
- Gulfport-Biloxi, Miss., down 9.4%. Median price was $100,600.
- Elmira, N.Y., down 8.2%. Median price was $105,700.
- Atlantic City, N.J., down 7.7%. Median price was $218,700.
They were followed by Pittsfield, Mass., down 7.6%; Charleston, W.Va., down 5.9%; Green Bay, Wis., down 5.8%; Manchester-Nashua, N.H., down 5.8%; and Hartford, Conn., down, 4.4%.
Mike who answered my post, I believe we are on the same page to a great extent; however, most people who are hurting and have been hurt by their pure honesty, don't know any other way. They have been beaten so much in the past many years and have no place to turn. As long as the greed is in the seed of government, business, banks,lenders, retailers, wholesalers, HUMANS to the extent that it is, we are all going to go down. Change is what is needed, if given a chance, change can happen, but because of greed and the I want it now, today idea, we all have to suffer for the greed of a few. Thanks for answering the post.
First the banks tank the housing industry with liar loans and get government bailout!
This money was suppose to help HOMEOWNERS KEEP THEIR HOMES!!!!
The banks then take this money and purchase futures based on their rigged LIBOR RATE!!
The homeowners and the economy are left to die!!
CONGRESS!! THE SENATE!! THE FED!! OBAMA KNEW THIS AS WELL!!
We all know Timmy Treasuer knew this!!
Our government needs to be replaced with term limits for all!!
About Teresa Mears
Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.