Existing home prices continue to rise

By Michelle E. Shaw

The Atlanta Journal-Constitution

Though the median sale price of an existing single-family home in metro Atlanta remains below levels reached a year ago, quarter-over-quarter improvements continue, the National Association of Realtors says.

The median price rose nearly 7 percent to $129,400 over the third quarter, from July 1 to Sept. 30, from $121,400 in the three months that ended June 30, according to figures released Tuesday by the association. While the current median price for a single-family home in the Atlanta area is 14 percent lower than it was this time last year, $151,300, it is nearly identical to the median price in the fourth quarter of 2008, $129,200.

If the median price is more than $129,200 at the end of the fourth quarter, it will be the first year-over-year improvement the metro area has seen since the second quarter of 2007.

“You can certainly make the case that we could see a year-over-year improvement next quarter,” said Dan Forsman, owner of Prudential Georgia Realty. “We’ve definitely seen the price of homes continue to improve, and it would seem the momentum is on our side and that price will continue to rise.”

The median is the midpoint for all sales; half of homes sold were priced higher, and half were priced lower.

“What’s going to happen is old-fashioned supply and demand is going to kick in, and [it] already has in some places,” Forsman said. “There hasn’t been a lot of building, so people looking to buy are turning toward resales, which is also allowing the price to come up.”

Nationally the median existing single-family price was $177,900, 11.2 percent below the third quarter of 2008.

Distressed sales, foreclosures and short sales -- 30 percent of sales in the third quarter -- continued to weigh down median home prices, the release said.

During the third quarter, 123 out of 153 metropolitan statistical areas reported declines in median existing single-family home prices when compared with the third quarter of 2008, according to a news release from the association.

“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, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market,” said Lawrence Yun, chief economist for the association. “Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures.”