Printer Friendly

MOST METROPOLITAN AREAS SHOWING HEALTHY PRICE INCREASES

 MOST METROPOLITAN AREAS SHOWING HEALTHY PRICE INCREASES
 WASHINGTON, May 6 /PRNewswire/ -- Existing-home prices rose in 109 out of 127 metropolitan areas(A) between the first quarter of 1991 and the first quarter of this year as improving affordability conditions brought more buyers into the market, according to the National Association of Realtors.
 Nationally, the median price for single-family resale homes in the first quarter was $103,100, rising 6.7 percent over the same period in 1991. Regionally, the strongest price increases were recorded in the Midwest and the South, with smaller and mid-sized cities generally outperforming larger, more expensive markets across the country.
 NAR President Dorcas T. Helfant said the first phase of the housing recovery began last fall when first-time buyers came into the market in larger numbers. "Now, we've entered phase two. Purchases by entry-level buyers have freed-up a lot of equity, and that's given a boost to the trade-up market," she said.
 Shortages of homes available for sale in some areas are having an impact on prices. "In some midwestern and southern cities there is very little inventory, and this is putting pressure on existing-home prices in those markets," Helfant added.
 Most areas are showing healthy price increases. "When prices rise faster than the rate of inflation but below the double-digit range, it fosters a healthy balance between buyers and sellers," Helfant said. "This gives sellers a good return on their investment and, at the same time, keeps home prices from outpacing increases in buyer income," she said.
 Median prices in the first quarter ranged from $342,000 in Honolulu to $41,700 in the Waterloo-Cedar Falls, Iowa, area. A median price is the midpoint in the price range; half the homes sell for more and half sell for less.
 The association's metropolitan home price survey shows there were 24 metropolitan areas with double-digit annual price increases. The strongest increase was in Spokane, Wash., where the median price of $71,300 rose 26.0 percent from the first quarter of 1991. Ranking second, Cedar Rapids, Iowa, showed a median price of $67,200, up 19.1 percent, while the third highest increase was in Gary-Hammond, Ind., where the median price of $75,500 rose 16.5 percent.
 NAR Chief Economist John A. Tuccillo said some notable, large metropolitan areas had higher than average price increases, including the Miami-Hialeah area, where the median price of $97,300 rose 10.6 percent from the first quarter of 1991. In Denver, the $91,300 median was 9.9 percent above a year ago, Houston saw a 9.5 percent increase to $78,200, and in Philadelphia, the median price of $119,800 was up 9.4 percent.
 Regionally, the Midwest showed the strongest price increases. Overall, the median price for the region during the first quarter was $81,000, up 6.2 percent from the first quarter in 1991. Tuccillo described the Midwest as the healthiest market in the country. "The Midwest has the best affordability conditions, but shortages of homes available for sale are pushing prices up in many areas," he said.
 "The Midwest has the largest concentration of cities with price increases higher than the national rate," Tuccillo added. "In fact, there are 13 metropolitan areas in the Midwest with price increases greater than 10 percent," he said.
 Following the Cedar Rapids and Gary-Hammond areas, the largest price increase in the Midwest was in Canton, Ohio, which recorded a median price during the first quarter of $70,100, up 14.9 percent from the same period in 1991. This was followed by the Green Bay, Wis., where the median price of $71,100 rose 12.7 percent.
 In the South, the median existing-home price was $90,500 during the first quarter, up 6.1 percent from the same period last year. San Antonio, where the first-quarter median price was $68,000, led the region with an annual increase of 14.3 percent. Baton Rouge followed with a 13.8 percent increase to $71,800, while the median price in Montgomery rose 11.0 percent to $79,600.
 The northeastern market is showing signs of a turnaround, Tuccillo said, with the regional median existing-home price up 3.8 percent to $142,900 in the first quarter. "This is the strongest annual increase in northeastern home prices since the fourth quarter of 1988," he added.
 The largest northeastern price jump was in Philadelphia, followed by Pittsburgh, where the median price rose 8.4 percent to $74,800. In Rochester, the price rose 7.6 percent to a median of $83,800.
 "Fewer areas in the Northeast are showing price declines, and most of these are minor," Tuccillo said. "In many cases, this resulted from large numbers of first-time buyers purchasing lower- priced homes," he explained. Under these circumstances, a decline in median price does not mean lost value, he said.
 In the West, the median existing-home price for the region was $147,700, up 1.9 percent from the first quarter of 1991. "The California coastal markets have been coming back, with the Los Angeles area showing an annual price increase of 4.8 percent to $218,000," Tuccillo said. There was a spurt of trade-up buyers in January, but the market has been driven by first-time buyers and most of the California markets are experiencing little change in median price as a result, he added.
 In addition to Spokane, the largest western price increases were in the Richland-Kennewick, Wash., area, where the median of $74,600 in the first quarter was 11.8 percent above a year ago, followed by Denver. In Portland, Ore., the median price of $92,300 was up 8.8 percent.
 The National Association of Realtors, "The Voice for Real Estate," is the nation's largest trade association, representing more than 750,000 members involved in all aspects of the real estate industry.
 (A) All areas surveyed are metropolitan statistical areas (MSAs) as defined by the U.S. Office of Management and Budget. They include the specified city or cities and surrounding suburban areas.
 -0- 5/6/92
 /CONTACT: Iverson Moore, 202-383-1290, Cheryl Spector, 202-383-1289, or Walter Molony, 202-383-1177, all of the National Association of Realtors/ CO: National Association of Realtors ST: District of Columbia IN: SU: ECO


DC -- DC006 -- 6903 05/06/92 08:45 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 6, 1992
Words:1052
Previous Article:ATEK METALS CENTER, INC. REPORTS EARNINGS FOR SECOND QUARTER OF FISCAL 1992
Next Article:FIRST-QUARTER HOME RESALES UP IN MOST STATES, NAR SAYS
Topics:


Related Articles
STEADY GAINS SEEN IN SECOND-QUARTER HOME PRICES
SMALL CITIES POST STRONG HOME PRICE GAINS IN THIRD QUARTER, ACCORDING TO NAR
STEADY GAINS SEEN IN SECOND-QUARTER HOME PRICES
STRONG DEMAND DRIVES UP FOURTH-QUARTER HOME PRICES, ACCORDING TO NAR
HEALTHY GAINS SEEN IN FIRST-QUARTER HOME PRICES
STEADY GAINS SEEN IN SECOND-QUARTER HOME PRICES
ULI SURVEY SEES APARTMENTS, SUBURBAN OFFICE SPACE AS LEADING REAL ESTATE MARKET SECTORS FOR RENTAL RATE INCREASES IN 1995
HOME PRICES RISE IN RESPONSE TO STRONG DEMAND
Most metro area home prices rising faster than inflation.
Homeownership Rate Gains Among Younger African Americans and Latinos Surpass Those for Whites in the Same Age Categories; Rates for Younger African...

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters