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Nationally, the median home price was down 3.1% in January as compared to January of 2006, acccording to the National Association of Realtors. But sales activity is up.
The lower prices apparently are helping to draw more buyers to the market. The pace of home sales rose 3 percent from December, coming in at an annual rate of 6.46 million homes. But that was also down 4.3 percent from year-earlier levels.
“It’s just like any market, when there’s price depreciation, buyers are more likely to come into the market place,” said Wachovia economist Phillip Neuhart. “I think prices will be flat to slightly negative this year. I don’t think we’re going to see any imminent recovery.”
The prices have been hurt by a glut of both new and existing homes on the market available for sale. The inventory of homes in the latest report rose 2.9 percent from December to 3.55 million. That’s up 23 percent from the supply of existing homes on the market a year ago, although its down 8 percent from the record high seen in July.
Nevertheless, this was the sixth straight month that the national median home price has declined (year over year comparison). Locally, the market is strong right now, with low inventory and strong sales activity. Oh well… California is always marching to the beat of its own drummer.
National Home Prices Down