Home Prices Show Increases in Many Markets

According to a mid-February report from the National Association of Realtors®, approximately half of metropolitan areas continued to show rising home prices in the fourth quarter of 2007.

Last quarter, 73 out of 150 metropolitan statistical areas showed increases in median existing single-family home prices from a year earlier, including 11 areas with double-digit annual gains and another 12 metros showing increases of 6 percent or more; 77 had price declines including 16 with double-digit drops.

NAR President Richard Gaylord said he is encouraged with plans to increase conventional loan limits. “Higher limits for FHA loans, which go into effect March 14, will be a big help to first-time buyers in high-cost markets. Higher limits for conventional loans purchased by Freddie Mac and Fannie Mae will take a bit longer – when they become available, high-income, creditworthy borrowers in high-cost areas will have access to affordable and safer financing, and that will help unleash pent-up demand,” he said.

Despite the annual decline in the fourth quarter median home price, the typical seller who purchased their home six years ago still saw a very healthy gain. The median increase in value for sellers who purchased that home in the fourth quarter of 2001 is 31.2 percent, and the median home equity accumulation is $49,000, the report said.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to 6.23 percent in the fourth quarter from 6.55 percent in the third quarter. In recent weeks, Freddie Mac has been reporting the 30-year fixed rate to be under 5.7 percent.

 For complete housing figures for Northern NJ click here.