Price Declines Slowing According to NAR Report

With all the negative news on housing and Wall Street lately, one would expect the sky to be falling. Please remember that what's happening in Phoenix, Santa Barbara or elsewhere does not necessarily translate to Lafayette or West Lafayette real estate. So keep things in perspective. Is the sky, in fact, falling...even nationally? Well, no. Prices have in fact lowered nationally, but the amount of decline is very small on an average basis.

The National Association of Realtor's (NAR) national housing data over the past 12 months (year ending June 30, 2007) yields some interesting facts. Here are some highlights:

  • Median price of a single-family home slipped 1.5%
  • Median price of a condominium rose 1.0 percent
  • Overall prices have declined 1.7% from their peak in the 3rd quarter 2005
  • 97 of 149 major metro areas appreciated in past 12 months
  • Home prices are relatively flat since bottoming out in 4th quarter of 2006
  • Recent mortgage disruptions will hold back sales temporarily
  • Prices expected to turn positive in spring 2008, with 2% gain on the year
  • Prices expected to increase further in 2009
  • Number of home sales fell more than home prices - down 10.8%
  • National home sales at 5.91 million vs 6.63 million one year ago
  • Current inventory level shows an 8 month supply of housing

Overall the news can be viewed as positive, since it now appears that the worst may be over with respect to price declines. The turnaround is showing some signs of materializing. Once again, this is national, not Lafayette real estate news. Greater Lafayette is fairing very strongly through these funny times. The biggest change here has been in lending.

We just met with some professionals this morning who we are very excited about working with. Many buyers are having trouble finding the financing they need for their home purchase, and we've learned that it doesn't necessarily have to be that difficult. We can help you. Our team is positioned to help you find the best financing available for your needs. Much has changed regarding financing your home purchase in the last several months. This does include Lafayette and our entire local market, so definitely give us a call to consult with us and some of the mortgage professionals we work with to get the full details.