A real estate group says home prices fell in eight out of every 10 U.S. cities in the third quarter of this year as heavily discounted distressed sales made up 30 percent of all deals. But home sales continued their climb, with quarterly sales outpacing the second quarter and the previous year's figures, the National Association of Realtors said Tuesday. The median sales prices of existing homes declined in 123 out of 153 metropolitan areas compared with the same period a year ago. Prices rose in the other 30 cities. The national median price clocked in at $177,900, or 11 percent below the third quarter last year. "The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas," said Lawrence Yun, the group's chief economist, in a statement. "But we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market." http://news.yahoo.com/s/ap/20091110/ap_on_bi_ge/us_metro_home_prices
everyone want low rates now. how long can be sustained that policy? gold runs, oil follows... unstable equilibrium imo
Home prices should be no more than 2.5X median household income. I have heard 50k is the median so 150k on housing.