Thursday, February 14, 2008

USA Home price in steepest quarterly drop.

Home prices in steepest quarterly drop
Realtors say prices fell faster and in more places over last part of 2007.
BY Les Christie, CNNMoney.com staff writer
February 14 2008: 10:00 AM EST


NEW YORK (CNNMoney.com) -- Home prices continued their plunge during the last three months of 2007, setting a real estate trade group's record for the biggest-ever quarterly drop. .

The national median price drop of 5.8%, to $206,200 from $219,300, was the steepest ever recorded by the National Association of Realtors (NAR), which has been compiling the report since 1979.

NAR officials blamed the liquidity squeeze that began last summer for much of the drop. Home buyers had trouble obtaining mortgage financing, especially for more expensive properties.

"The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the number of transactions in higher price ranges," said Lawrence Yun, NAR's chief economist, in a statement.

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