If you’re a homeowner, the recent movement of home prices is as sickening to watch as a mountaineer falling off a cliff. As recently as a year ago, prices of existing homes were rising an amazing 15% a year.
But the rate of increase has been going down, down, down. In August, the year-over-year change went below zero for the first time since 1995. The National Association of Realtors announced Sept. 25 that the median price nationally in August, 2006, was $225,000, 1.7% lower than in August, 2005.
Time to punch that pulsing-red panic button? Not yet. Because several other pieces of news in the Realtors report were better than expected, indicating that the housing downturn may not be quite as bad as some fear.
