Your Economy (No Politics)

[Bullwinkle]

Here is some hard data to add to my previous post:


Real Estate Home Appreciation - Last 12 Months
Last Updated: 9/7/2007

We compare home sales prices to the same period a year ago, because month-to-month prices fluctuate wildly. Bigger houses seem to sell in the summer or when the weather is better and school is out, so larger families with larger home are more willing to move.

Nationally, the median average sales price decreased slightly compared to last year, down just over a half percent (0.56%) to $228,900. The Northeast showed an increase of 5.94% in value and the West increased .92%. The Midwest declined by 1.81% and the South fell by 3.22%.

Since the early sixties when experts first began tracking this data, there has never been a year when the national median average price decreased. It won't be until late January 2008 that we will get definitive figures on price appreciation for 2007.

The biggest factor in slower price growth is probably just that too many houses are on the market. If we were to return to 2001 or 2002 inventory levels with 1.8 to 2.1 million houses on the market at a time, that would more appropriately match today's sales pace. Home prices would likely begin appreciating between six and nine percent per year. Half the homes currently for sale would have to drop off the market suddenly.



The chart at the top left summarizes the regional graphs below. When looking at the graphs below, you will notice large dips during the winter months and peaks during the summer months. That is due to seasonal fluctuations. The correct way to look at annual price growth is to compare the beginning point of the graph to the end point.

Data Source: National Association of Realtors





http://www.realestateabc.com/outlook/overall.htm