Hot and Cold Extremes in the Housing Market

An industry report issued by the NAR (National Association of Realtors), released last Monday, indicated very little change in the markets dominating appreciation of prices nationwide. In the major metro markets, San Francisco leads the charge with the most expensive median price of $689,200; which is more than 8 times the average price of a home in Youngstown, Ohio, for instance.

Florida continues to take the trophy for being the fastest appreciating market over the 12 month period ending March 31, 2005; namely Bradenton (45.6% increase), Sarasota (36%), West Palm Beach (35.9%), and Ft. Lauderdale (31.8%).

Our own Las Vegas real estate market has seen an appreciation of 29.4%; which still lags behind Riverside/San Bernadino with its 32.6% increase.

"Just when you think sales activity is ready to settle into a more sustainable pace, the housing market continues to surprise," said a statement from David Lereah, NAR's chief economist. Mortgage rates suggest the strong sales could continue. The average 30-year rate in June was 5.58%, the lowest average since March 2004.

On the other side of the coin, there are markets showing a decrease in home prices. House prices in Beaumont, TX fell 6.5% to a median price of $90,000, and Waterloo/Cedar Falls, IA showed a decrease of 2.6% to a median of $86,500. Other "affordable" markets include Canton, OH, down 4.5%, and Syracuse, NY, down 2.6%, with median prices in both areas less than $120,000. Coming in dead-last as the housing market with the lowest prices, according to the NAR, was in Youngstown, OH, where the median price is $82,400.

Konnel Peterson
REMAX Associates
1-800-LVHOMES