Home prices stabilize at end of ‘09

By Michelle E. Shaw

The Atlanta Journal-Constitution

Home sale prices in metro Atlanta fell 3.4 percent in the last three months of 2009 from a year earlier, the smallest annual decline in several quarters and an indication the local market has at least stabilized.

The median sale price for existing homes was $124,800 in last year’s fourth quarter, down from $129,200 a year earlier, the National Association of Realtors reported.

That compared with far steeper year-over-year declines of 14 percent in the third quarter and 23 percent in the second quarter.

Nationally, home prices fell 4 percent in the quarter -- also the smallest such decline since the housing bubble burst -- and seasonally adjusted sales volume surged 27 percent amid an extended $8,000 first-time buyer tax credit, the association reported. Sales volume is not broken out by city.

The latest metro Atlanta price figures are good news because of the slowing rate of year-over-year decline, said Dan Forsman, owner of Prudential Georgia Realty.

The fourth quarter price was down about 4 percent from $129,400 for the third quarter of 2009. But it was ahead of prices for both the second quarter, $121,400, and the first quarter, when the price dipped to $115,600.

The median price is the midpoint for all sales. Half of homes were priced higher, half lower.

Nationally, 67 out of 151 metropolitan statistical areas reported year-over-year price increases in the fourth quarter, according to the Realtors Association. Metro Atlanta was among 84 with declines.

In the previous quarterly report, 30 metro areas showed year-over-year increases and 123 saw declines, the release said.

“This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” said Lawrence Yun, chief economist for the association. “Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable.”