Home Prices Post Record Gains
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Contributed by: Reuben Sailor
Reuben Sailor Properties
Read more archived articles about Economy - Good
I ran across this article on CNN's site and thought I'd share it with the group. It is a few weeks old, but good info nonetheless.
http://money.cnn.com/2003/11/12/pf/yourhome/3Qmetroprices/index.htm
Home prices post record gains
Report shows gains of at least 10 percent in 41 markets, the most ever, real estate group says.
November 13, 2003: 12:20 PM EST
By Sarah Max, CNN/Money Staff Writer
BEND, Ore. (CNN/Money) - Home prices in a third of the nation's cities and towns jumped at least 10 percent in the third quarter, making it one of the strongest quarters for housing prices on record, a real estate group said Thursday.
10 Hottest Housing Markets
41 metros saw double-digit price gains between the third quarters of 2002 and 2003
Market Increase Median price
Riverside/San Bernardino, CA 26.5% $228,900
Los Angeles, CA 25.4% $365,300
Atlantic City, N.J. 22.6% $183,500
Trenton, N.J. 22.2% $234,300
Daytona Beach, FL 19.7% $128,600
Miami/Hialeah, FL 19.4% $237,300
Providence, RI 18.7% $241,400
Baltimore, MD 17.8% $220,200
Melbourne/Titusville/Palm Bay, FL 17.3% $135,300
Bradenton, FL 17.2% $176,300
Source: National Association of Realtors
Prices rose at least 10 percent from a year earlier in 41 of the 124 areas tracked by the National Association of Realtors, the highest number of markets showing double-digit increases since the group began tracking home prices by area in 1982, the NAR said.
Yet again, prices in Riverside and San Bernardino counties, near Los Angeles, posted the biggest increase.
The median price for an existing home in those markets jumped 26.5 percent to $228,900. Half the homes sold for above the median price and half for below.
Those two counties were among those severely damaged by recent California wildfires, which could affect values in the current quarter.
In Los Angeles, meanwhile, the median price shot up 25.4 percent to $365,3000. Atlantic City and Trenton, N.J. followed with increases of 22.6 percent and 22.2 percent, respectively.
Only one metro area, Fort Wayne, Ind., experienced a drop in home values, with the median-priced home down 2.3 percent to $96,800.
NAR chief economist David Lereah attributed the latest gains to historically low inventories of homes available for sale.
Low interest rates, meanwhile, have continued to drive demand for housing.
The national average commitment rate for 30-year fixed-rate mortgages was just over 6 percent during the third quarter, up from 5.5 percent in the second quarter, according to Freddie Mac, but still historically low.
When will the housing market bubble burst? Ingo Winzer, president of Local Market Monitor, comments on the housing market.
Total existing-home sales activity in the third quarter was the highest on record.
For the first time in 20 years, all 48 states tracked by the NAR, as well as the District of Columbia, posted a higher rate of sales in the third quarter than a year earlier.
Nevada had the greatest increase in sales. The number of existing single-family homes, condos and co-ops sold jumped 37.6 percent. In Washington, sales rose 36.7 percent.
"The record lows in mortgage interest rates naturally drew buyers into the market, with many more jumping in when interest rates began to rise," NAR President Walt McDonald said in a statement.
Real Estate Resources
"The good news is the 30-year fixed mortgage interest rate is hovering around 6 percent."
Not every state had huge increases in the number of existing homes sold. In Wyoming, sales were up just 3.4 percent in the quarter.
And New York and Indiana home sales rose a modest 3.9 percent and 4.8 percent, respectively.
Note: The rest of this article can be read here http://money.cnn.com/2003/11/12/pf/yourhome/3Qmetroprices/index.htm
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