Salt Lake City home prices lag behind U.S. rally
The local decline in the first-quarter ranked
ninth-largest nationally.
Staff And News Services
Salt Lake Tribune
Updated:05/11/2010 06:24:57 PM MDT
Although a sizable majority of U.S. metro areas saw median home prices rise in the first quarter, the median in the
Salt Lake City area fell 11.4 percent year-over-year, the ninth-largest decline nationwide.
A report released Tuesday by the National Association of Realtors ( NAR) showed many cities that led the nation in
foreclosures a year ago had the biggest price increases. Lawrence Yun, chief economist for the Realtors' group,
said that could have been driven by a federal tax credit of as much as $8,000 that boosted demand in many areas
of the country from almost zero and drove the supply of unsold homes to a four-year low by the end of January.
Brian Bethune, chief U.S. financial economist for IHS Global Insight, said an improving job market could sustain the
fledgling rebound in real estate, given that the tax incentive has expired, though there are no guarantees.
That same tax credit, which ended April 30, might have helped push down the median selling price in the Salt Lake
area to $203,000 as more first-time buyers purchased lower-priced properties in the first quarter, said NAR
spokesman Walter Molony.
Another factor pressuring prices may have been an increase in the sale of distressed properties. Sales of
foreclosures and related properties made up 36 percent of all sales nationally in the first quarter.
Among 152 metro areas nationwide, Orlando, Fla., saw the largest drop, a 15 percent decline, to just under
$132,000. Ocala, Fla., where prices fell 14.5 percent, to a median of about $93,000, had the second-highest
decline, followed by Cumberland, Md., where prices fell 14.4 percent, to $98,300.
Although the national median selling price was $166,100, or 0.7 percent below the first quarter of last year, the
Realtors report was more upbeat than recent ones.
In nearly 60 percent of the metro areas surveyed, prices for previously occupied homes rose over the past year,
including double-digit price increases in 29 cities.
That's a sharp improvement from the fourth quarter of last year, when prices rose in only about 40 percent of cities,
the NAR said.
The largest percentage price increases were in some of the nation's most affordable areas, which also were areas
hit hardest by the recession. The largest increase was in Saginaw, Mich., where the median price doubled, to
nearly $61,000. Prices in Akron, Ohio, were up 95 percent, to about $95,000. Prices in Cleveland were up 54
percent, to $106,400.
The U.S. median home price tumbled 29 percent over three and a half years as defaults among subprime
borrowers flooded the housing market with cheaply priced foreclosures and Wall Street piled up $1.78 trillion in
losses and asset write-downs.
The median prices of an existing U.S. home peaked at $230,300 in July 2006 and hit a low of $164,600 in
February, according to NAR data. The drop was 13 percent in 2009, outpacing 2008's 9.5 percent decline.
The group said the Salt Lake City median peaked at $232,000 in 2007. The annual decline from $229,600 in 2008
to $217,000 in 2009 was 5.5 percent.
Median price nationwide is leveling off Nationwide, the median price of $164,600 was down slightly, but metro areas
saw some big gains.
U.S. metro areas had big gains Home prices in nearly 60 percnet of metroplitan areas nationwide rose in the first
quarter of 2010..
SLC lagging other cities' recovery Salt Lake City's median home prices actually fell 11.4 percent -- the ninth-largest
decline.
The local decline in the first-quarter ranked
ninth-largest nationally.
Staff And News Services
Salt Lake Tribune
Updated:05/11/2010 06:24:57 PM MDT
Although a sizable majority of U.S. metro areas saw median home prices rise in the first quarter, the median in the
Salt Lake City area fell 11.4 percent year-over-year, the ninth-largest decline nationwide.
A report released Tuesday by the National Association of Realtors ( NAR) showed many cities that led the nation in
foreclosures a year ago had the biggest price increases. Lawrence Yun, chief economist for the Realtors' group,
said that could have been driven by a federal tax credit of as much as $8,000 that boosted demand in many areas
of the country from almost zero and drove the supply of unsold homes to a four-year low by the end of January.
Brian Bethune, chief U.S. financial economist for IHS Global Insight, said an improving job market could sustain the
fledgling rebound in real estate, given that the tax incentive has expired, though there are no guarantees.
That same tax credit, which ended April 30, might have helped push down the median selling price in the Salt Lake
area to $203,000 as more first-time buyers purchased lower-priced properties in the first quarter, said NAR
spokesman Walter Molony.
Another factor pressuring prices may have been an increase in the sale of distressed properties. Sales of
foreclosures and related properties made up 36 percent of all sales nationally in the first quarter.
Among 152 metro areas nationwide, Orlando, Fla., saw the largest drop, a 15 percent decline, to just under
$132,000. Ocala, Fla., where prices fell 14.5 percent, to a median of about $93,000, had the second-highest
decline, followed by Cumberland, Md., where prices fell 14.4 percent, to $98,300.
Although the national median selling price was $166,100, or 0.7 percent below the first quarter of last year, the
Realtors report was more upbeat than recent ones.
In nearly 60 percent of the metro areas surveyed, prices for previously occupied homes rose over the past year,
including double-digit price increases in 29 cities.
That's a sharp improvement from the fourth quarter of last year, when prices rose in only about 40 percent of cities,
the NAR said.
The largest percentage price increases were in some of the nation's most affordable areas, which also were areas
hit hardest by the recession. The largest increase was in Saginaw, Mich., where the median price doubled, to
nearly $61,000. Prices in Akron, Ohio, were up 95 percent, to about $95,000. Prices in Cleveland were up 54
percent, to $106,400.
The U.S. median home price tumbled 29 percent over three and a half years as defaults among subprime
borrowers flooded the housing market with cheaply priced foreclosures and Wall Street piled up $1.78 trillion in
losses and asset write-downs.
The median prices of an existing U.S. home peaked at $230,300 in July 2006 and hit a low of $164,600 in
February, according to NAR data. The drop was 13 percent in 2009, outpacing 2008's 9.5 percent decline.
The group said the Salt Lake City median peaked at $232,000 in 2007. The annual decline from $229,600 in 2008
to $217,000 in 2009 was 5.5 percent.
Median price nationwide is leveling off Nationwide, the median price of $164,600 was down slightly, but metro areas
saw some big gains.
U.S. metro areas had big gains Home prices in nearly 60 percnet of metroplitan areas nationwide rose in the first
quarter of 2010..
SLC lagging other cities' recovery Salt Lake City's median home prices actually fell 11.4 percent -- the ninth-largest
decline.
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