U.S. Home Price Gains

New Realtor stats shows the credit crunch spreading pain nationwide. My trusty spreadsheet tells me only 11 of 152 towns tracked in the fourth quarter by the National Association of Realtors had price gains for sales on single-family residences vs. the third quarter. That's when shaky global financial markets began to make mortgages harder to get. Overall, U.S. prices fell 6.4% between the third and fourth quarters.

The fourth quarter's limited U.S. winners compares to 53% quarterly price gains in 151 U.S. markets in the third quarter. And while the fourth quarter can be weak for pricing, in 2006's fourth quarter saw 17% of the towns tracked by NAR had price gains.

Here's a look at my analysis of NAR's quarterly metropolitan area data: percent of U.S. towns with gains; overall change in U.S. pricing ...

By the way, NAR chose to look at year-over-year data, which is fine. NAR tried to put on an glass-half-full view: "In the fourth quarter, 73 out of 150 metropolitan statistical areas show increases in median existing single-family home prices from a year earlier, including 11 areas with double-digit annual gains and another 12 metros showing increases of 6 percent or more; 77 had price declines including 16 with double-digit drops." In addition, NAR quotes its current president, Richard Gaylord, a broker with RE/MAX Real Estate Specialists ...

"Higher limits for FHA loans, which go into effect March 14, will be a big help to first-time buyers in high-cost markets. Higher limits for conventional loans purchased by Freddie Mac and Fannie Mae will take a bit longer - when they become available, high-income, creditworthy borrowers in high-cost areas will have access to affordable and safer financing, and that will help unleash pent-up demand. ... With the market in a state of flux, it's especially important for consumers to stay abreast of widely varying and changing market conditions. We encourage them to have a traditional long-term view, which means taking the time to thoughtfully research the market" To read more, CLICK HERE