San Antonio’s Median Sales Price For Single-Family Homes Up 7.9 Percent

February 14, 2008

Roughly half of metropolitan areas continued to show rising home prices in the fourth quarter of 2007, according to the latest quarterly survey by the National Association of Realtors®.

In the fourth quarter, 73 out of 150 metropolitan statistical areas(1) 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.

Lawrence Yun, NAR chief economist, said disruptions in the mortgage market have played a role. “The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the number of transactions in higher price ranges,” he said. “For buyers who need loans of more than $417,000, mortgage interest rates have been running more than a percentage point higher, and that has been having an obvious impact. Higher ratios of sales for more moderately priced homes are naturally dampening the national median price as well as the data for some of the more expensive markets.”

NAR’s track of metro area single-family home prices is the largest published series of metropolitan home prices, with data available back to 1979. The metro home price series treats all homes equally, without placing higher weights on more expensive homes as in other home price series. (See NAR Metro Area price charts.)

The disruption in higher priced sales continues to drag down the aggregate national median existing single-family home price, which was $206,200 in the fourth quarter, down 5.8 percent from the fourth quarter of 2006 when the median price was $219,000. The national median normally is a typical market price, where half of the homes sold for more and half sold for less.

NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said he is encouraged with plans to increase conventional loan limits. “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,” he said.

“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. More than ever, the best resource is a Realtor® who can put local conditions in perspective, provide advice and negotiate the transaction.”

Median Price