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Housing prices: September sees largest drop in 35 years
This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Is this what a housing bust looks like? New home prices fell last month by the largest amount in 35 years, and owners are being warned to brace for further declines, especially in formerly hot markets.

After years of increases, some buyers say prices are still out of their range.

The Commerce Department reported that the median price for a new home sold in September was $217,100, a decline of 9.7 percent from September 2005.

That was the lowest median home price in two years and the sharpest year-over-year decline since December 1970, providing dramatic evidence of the slowdown in the once-booming housing market.

The median price is the middle point, where half sell for more and half sell for less.

In Utah, annual gains of 20 percent to 30 percent continue in neighborhoods along the Wasatch Front, according to a third quarter report released last week by the Salt Lake Board of Realtors.

But the number of homes that changed hands in Salt Lake and Davis counties in the third quarter declined compared with the same three months in 2005.

The price decline for new homes in the rest of the country followed a report Wednesday that prices in the much bigger existing home sales market also dropped on a year-over-year basis in September by 2.5 percent, the largest decline in records going back nearly four decades.

Analysts say further price declines are probable for both new and existing homes.

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