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[Gene GeRue <genegerue AT ruralize.com>]

From:
http://www.rismedia.com/index.php/article/articleview/12547/1/1/

Home-Price Appreciation Stays Hot in Most Metro Areas
                
RISMEDIA, Nov. 16 — Strong annual increases in median existing-home prices 
were common in most metropolitan areas during the third quarter, according 
to the latest report by National Association of Realtors®.

The association’s third-quarter median existing single-family home price 
survey, covering changes in 147 metropolitan statistical areas,* shows 69 
areas with double-digit annual price increases. Six metros had small price 
declines.

The national median existing single-family home price was $215,900 in the 
third quarter, up 14.7% from the third quarter of 2004 when the median 
price was $188,200. The median is a typical market price where half of the 
homes sold for more and half sold for less. Ninety-seven metros – 
two-thirds of the total – experienced increases greater than the U.S. 
historic average of 6.4%.

David Lereah, NAR’s chief economist, said the pace of price appreciation in 
the third quarter is far from being normal over time. “These historically 
high home price gains are the simple result of more buyers than sellers in 
the market,” he said. “The good news is that inventory levels are 
improving, and housing supply will come close to buyer demand in 2006. In 
other words, we expect a healthy and more balanced market next year.”

Since 1968, home prices generally have risen between 1 and 2percentage 
points faster than the overall rate of inflation; the historic average 
price gain appears high relative to inflation because there was a period of 
rapid inflation in the U.S. during the 1970s and early 1980s.

NAR President Thomas M. Stevens explained what buyers and sellers generally 
can expect in the coming year. “Improvements in inventory in most areas 
should take pressure off of home buyers to make snap decisions, or find 
themselves in a competitive bidding situation,” said Stevens, senior vice 
president of NRT Inc. “This calmer real estate market will create a more 
level environment for buyers in weighing options to invest in the American 
dream of homeownership. Sellers will enjoy very healthy gains on the value 
of their home, but should expect annual increases to be much closer to 
historic levels going forward.”

Click to view Metro Prices Data

The strongest price increase in the nation was in the 
Phoenix-Mesa-Scottsdale area of Arizona, where the third quarter price of 
$268,000 rose 55.2% from a year earlier. Next was Orlando, Fla., at 
$261,300, up 44.8% from the third quarter of 2004. Cape Coral-Fort Meyers, 
Fla., with a third quarter median price of $277,600, was up 42.5% in the 
last year.

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