New Jersey Real Estate Digest: Median Prices Fall Slightly

Tuesday, September 26, 2006

Median Prices Fall Slightly

The median price for existing homes fell in August according to the National Association of Realtors. The median is the point where half the houses sold for more and half for less. In August the median price was $225,000. NAR's chief economist said the declining prices in July and August is part of the "expected price correction".

“This is the price correction we’ve been expecting. With sales stabilizing, we should go back to positive price growth early next year,” NAR Chief Economist David Lereah said.

There are a number of factors contributing to the increase in inventories, nationally.

In some areas, home sellers are not making sufficient adjustments in their listing price, so their homes are staying on the market and contributing to the build up in inventory,” says NAR President Thomas M. Stevens from Vienna, Va.

Though there is a backup of inventory NAR's economist says we are still going to have the third highest home sales year. Lereach also predicts we should see "positive price growth early next year."