Another look at local home prices
Winter of home sellers' discontent? Maryland's drop in home prices in the months of January through March was sixth-largest in the country, according to new federal figures.
But there is one ray of sunshine there for anyone who sees price drops as bad news.
The 10 percent decline -- compared with the first three months of 2008 -- wasn't as steep an annual decrease as Maryland home prices saw last fall, the Federal Housing Finance Agency says. Prices were down almost 13 percent then. That was the biggest year-over-year drop in Maryland in at least 17 years, as far back as the agency's seasonally adjusted, purchase-only index goes.
FHFA -- the agency whose predecessor was OFHEO -- tracks repeat transactions of the same single-family homes to try to avoid the apples-to-oranges comparisons that can crop up when averaging all sales over time. It's based off Fannie Mae and Freddie Mac mortgages, though, so it doesn't represent the entire market.
Yeah, yeah, you say, enough of the wonk-stuff. Who dropped more than Maryland?
1. Nevada, down 31 percent
2. Florida, down 22.5 percent
3. California, down 22 percent
4. Arizona, down 19.5 percent
5. D.C., down 15 percent
The rest of the country dropped less than 10 percent. Alaska, Oklahoma, North Dakota and South Dakota saw increases. (Alaska's was almost 5 percent, but the rest were tiny.)
Home prices in Nevada, Florida and California -- prime housing-bubble states -- are now below what they were five years ago. Same with economically struggling Michigan and a few other states.
Maryland? It's 22 percent above its five-year-ago mark. Fifteen other states are higher than that; the rest are lower.
The FHFA, which also tracks metros, says prices in the Baltimore area dropped about 8 percent. Again, that's the purchase-only index. Throw in refinancing, and the value drop is about 6.5 percent.
Comments
Great news!
Baltimore was a few years late arriving to the housing frenzy party, but certainly jumped in with both feet. Here's hoping for a number one ranking later on this year!
Hoard cash wonkers, and get ready to really insult some sellers!
Posted by: Darwin Rules | May 28, 2009 1:35 PM
A question for sellers and realtors out there. Most educated buyers can figure out how much you paid for your home, so how can you ask for more than you paid if you bought in the last 3 to 4 years? Not trying to be snarky, it's an honest question.
Posted by: Kevin R | May 29, 2009 2:14 PM
Kevin R,
Most sellers are probably looking to luck up on the most uneducated buyer to load their home onto.
These days, I don't know how many "uneducated" buyers exist, but good luck sellers!
Posted by: cinema | May 29, 2009 3:59 PM
To Kevin R,
Please keep in mind that most homebuyers tend to make improvements to properties. Part of the incentive for making improvements and adding value to the property is having a reasonable expectation that you will be able to recoup your investment.
To Darwin Rules,
A continued drop in home prices is not in anyone's best interest, and it will only deepen and worsen the global economic slump/depression we are experiencing. Further price declines will only push more homeowners underwater, when it comes to the value of their homes vs. what they owe on their homes, and this applies to all home owners, not just the ones who got caught in the buying frenzy and over paid to begin with or who took out exotic loans. Frankly, I am somewhat appalled at your gloating and condescending attitude with respect to the economic and financial hardships that many good and decent families are having to face.
Posted by: Jody Landers, EVP Greater Baltimore Board of REALTORS® | May 29, 2009 6:05 PM
Jody Landers - I can't agree more. Those who helped create this global economic slump/depression should stop the comments that other readers may find appalling.
Posted by: ROn | May 30, 2009 12:27 AM
Jody,
My comment was more about the bubble that occured in the past 5-6 years. If we've bottomed out as most Realtors are saying, wouldn't prices be lower than what they were at the height (3-4 years)? I don't see that THAT many homeowners have poured enough money to overcome 10-20% drops in value. Either sellers are too hopeful or the bottom is still a ways out.
Posted by: Kevin R | May 30, 2009 12:45 AM