NEW YORK (CNNMoney.com) -- Real estate prices continued to post steep year-over-year declines during the three months ended June 30, according to a new report from the National Association of Realtors (NAR).
Nationwide, the median existing single family home price plunged 7.6% to $206,500 from $223,500 in the second quarter of 2007. The median price represents the point at which half of all homes sold for more and half sold for less.
A record numbers of foreclosures helped drive down prices, according to NAR. In fact, foreclosures and short sales accounted for about one third of all existing homes sales.
"In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement cost values," said NAR president, Richard Gaylord. "Many buyers with long-term expectations are getting exceptional value in the current market."
Sun Belt metro areas led with price declines. These areas ran up fabulous gains during the mid-2000s boom, but are experiencing even more severe declines during the bust.
In Sacramento, Calif. prices plunged 35.6% year-over-year to $$229,500. Cape Coral, Fla. saw a decline of 33.1%, while prices in Riverside, Calif. dropped 32.7%, and Los Angeles prices are down 29.6%. Las Vegas prices fell 23.6% and Phoenix was down 22.5% for the quarter.
More bargain hunting buyers are coming into the market, according to the Realtors association. "The biggest home-sales gains over the previous quarter have been in some of the markets with the steepest and fastest price drops," said Lawrence Yun, NAR's chief economist. "Buyers in these areas are responding to deeply discounted home prices."
The biggest regional home price declines occurred in the West, where the median home price declined 17.4% to $290,500.
At the same time, sales in that part of the country increased. Existing-home sales were up 25.8% in California, 25% in Nevada, 20.5% in Arizona.
Prices in the South, at $177,000, were almost flat, down just 0.9%, while Florida sales saw an uptick of 10.1% in the quarter.
The Northeast median home sold for $269,000, down 9.6%, and prices in the Midwest were down 4.1% to $161,500.
Among metro areas, Yakima, Wash. posted the largest price increase, up 8.9% year-over-year to $162,300. Binghamton, N.Y. was second with a price jump of 8.7% to $120,900.
Condo prices fell much less than single family homes, down just 3% year-over-year to $220,000 from $226,900. A couple of cities recorded double-digit condo price gains, led by Syracuse, N.Y., up 17.8% to $144,900, and New Orleans, up 15.9% to $192,100. Houston condo prices rose 9.9% to $141,100.
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[Via Home Mortgage Rates and Real Estate News]
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