Home prices fell in nearly nine out of every 10 U.S. cities in the fourth quarter of last year as low-cost foreclosures flooded the market and the housing market's decline spread nationwide.
The National Association of Realtors said Thursday that median sales prices of existing homes declined in 134 out of 153 metropolitan areas, compared with the same period in 2007. Sales fell in all states --Utah included -- but six.
Nationwide, the median sale price was $180,100, down 12 percent from a year ago. But price declines of 30 percent or more were found in much of California, plus parts of Michigan, Florida, Arizona and Nevada. The biggest drop, of more than 50 percent, was in Fort Myers, Fla. Prices were off a modest 1.6 percent in the Salt Lake City area.
President Barack Obama visited Fort Myers earlier this week in an effort to sell his economic rescue package, which lawmakers are preparing to send to his desk by Friday.
The states in which sales rose -- Nevada, California, Arizona, Florida, Minnesota and Virginia -- are places where buyers have been able to snap up foreclosed homes at a bargain. Sales more than doubled in Nevada, rose 85 percent in California, and nearly 43 percent in Arizona.
In California and Florida, sales of distressed properties accounted for about two-thirds of all sales, compared with about 45 percent nationally.
A nasty brew of strict lending standards, falling home values, soaring foreclosures and a severe recession is filtering through the housing market.
Nationwide, more than 274,000 homes received at least one foreclosure-related notice in January, according to RealtyTrac Inc., an Irvine, Calif.-based foreclosure listing service. That was down 10 percent from December, but still up 18 percent from the same month a year ago. The numbers would have been higher if not for efforts to stall the foreclosure process.
In Utah, nearly 1,800 homes received at least one foreclosure-related filing last month, RealtyTrac said.
More than 2 million American homeowners faced foreclosure proceedings last year, and that number could soar as high as 10 million in the coming years depending on the severity of the recession, according to a report last month by Credit Suisse.
