Existing Home Prices Expected to Increase This Spring

Published by nora | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Mortgage / Finance, Real Estate

If you’ve found the house you’re looking for, it’s advisable to buy it now, as home prices are expected to increase this spring, based on the week-by-week price trend monitored by Altos Research.

The month-over-month existing home price trend showed continued decline over the past three months, but the latest week-by-week showed increases. The Altos Ten-City Price Composite dropped by 3.44 percent to $453,573 in February 2011 over a span of three months and dropped by 2.01 percent over the past four weeks.

The declines were especially substantial in San Francisco, Washington, D.C. and Detroit, which posted 9.31 percent, 8.13 percent and 5.65 percent of drops, respectively, over a period of three months. It’s surprising that San Francisco and Washington, D.C., among the high-cost metropolitan areas, showed the biggest price drops.

The median price for pre-owned homes in San Francisco dropped from $655,845 in December 2010 to $616,549 in January 2011, and then dropped further down to $594,805 in February 2011. In Washington, D.C., the median price for existing home prices decreased from $460,995 in December 2010 to $435,998 in January 2011, and decreased further to $423,518 in February.

Among the 27 major cities tracked by Altos, the cities which showed the least price drops were New York City, with a 0.13 percent drop, Phoenix, with a 0.61 percent drop, and Miami, which showed a 1.27-percent drop. It’s also surprising that Miami and Phoenix, among the cities hardest hit by foreclosures, showed the least price decreases in February.

In New York City, the median price for existing home prices dropped from $567,353 in December 2010 to $566,616 in January 2011, and remained unchanged in February. In Phoenix, the median home price dropped from $216,844 in December 2010 to $216,137 in January 2011, and dropped slightly to $215,518 in February.

The cities with the highest pre-owned home prices in February among the metro areas tracked by Altos were the following:

1. San Jose — $648,839
2.  San Francisco — $594,805
3. San Diego — $584,979
4. Los Angeles — $580,358
5. New York City — $566,616

The cities with the lowest median existing home prices in February were the following:

1. Detroit — $125,143
2. Las Vegas — $144,685
3. Cleveland — $154,200
4. Indianapolis — $154,636
5. Tampa — $176,127
6. Atlanta — $184,355

As you can see, existing home prices in Tampa are among the lowest in the 27 metro areas tracked by Altos. The median price in Tampa dropped by 3.71 percent from $182,922 in December last year to $176,127 in February 2011, although the rate of decline has slowed, according to Altos.

For assistance in finding the best affordable home for you, contact the friendly and experienced realtors of Tampa4U.com.