Home prices rise in Valley

Staff/wire reports

WASHINGTON

Home prices dropped in nearly three-quarters of U.S. cities over the summer, dragged down by a decline in buyer interest and a high number of foreclosures.

The National Association of Realtors said Wednesday the median price for previously occupied homes fell in the July-September quarter in 111 out of 150 metropolitan areas tracked by the group. Prices are compared with the same quarter from the previous year.

Youngstown, however, was one of eight metro areas that saw double-digit price jumps.

Home prices in Youngs-town increased 13.1 percent.

“As an acting Realtor, I’ve seen definitely the pent-up buyers coming out,” said David Klacik of the Youngstown Columbiana Association of Realtors. “They’ve been sitting and watching the market and are now playing with cash.”

The largest increase was in Grand Rapids, Mich., where the median price rose 23.7 percent. South Bend, Ind., and Palm Bay, Fla., also saw large price increases.

Fourteen cities had double-digit declines. The median price in Mobile, Ala., dropped 17.7 percent, the largest of all declines. Phoenix and Allentown, Pa., Atlanta, Las Vegas and Miami also experienced steep declines.

The national median home price was $169,500 in the third quarter, down 4.7 percent from the same period last year.

In Youngstown, median home prices rose from $60,400 to $68,300.

Klacik said because Youngstown’s average median home price is so much lower than the national average, any increase or decrease in those values appears to be amplified.

He also said that those low values are attracting home buyers from other states and even other countries.

“Look at the airports surrounding Youngstown,” he said. “Everything is so close to us, and we don’t have to be paying ridiculous housing prices.”

Most analysts say prices will sink further because unemployment remains high and millions of foreclosures are expected to come onto the market over the next few years.

Sales of previously occupied homes dropped to a seasonally adjusted annual rate of 4.88 million in the third quarter, slightly ahead of last year’s pace for the same period.

Sales were lower than usual for the summer season last year because a federal tax credit inspired more buying in the spring.

This year, sales are on pace to finish behind last year’s total, which was the lowest in 13 years.

Sales are low even though the average rate on the 30-year fixed mortgages is hovering near 4 percent.