From the glass is always full file: Today’s economic numbers reveal prices down 1.2% in the third quarter, w/ sales volumes off by nearly 13%.  But interestingly, the lead sentence in today’s press release from the National Association of Realtors (NAR) read:

"Conditions for home buyers improved during the third quarter as existing single-family home prices in many metropolitan areas experienced corrections, and most states saw sales activity below a year ago which helped to build housing inventories... "

One seller’s pain is the next buyer’s opportunity, so applause to the NAR for highlighting the fact that we might be entering a period which will offer some deals for savvy value investors, but I remain wary of his sunny outlook for a quick turnaround. 

The national median existing single-family home price was $224,900 in the third quarter, down from $227,600 a year ago. 

Interestingly, the market is still jumping in some areas.  Salem, Oregon saw a 24.7 percent increase over a year ago.  Elmira, New York was up 21.4 percent, and the Salt Lake City area saw a 19.2 percent increase.  Disparity between under- and over-valued markets has been slow to close.  Median values in areas like San Francisco and San Jose are nearly nine times those in affordable Decatur, Illinois. 

NAR’s chief economist David Lereah doesn’t foresee a market correction, predicting “…modest appreciation in most of the country in 2007.”   In an earlier posting I referenced a somewhat more candid comment made by Lereah speaking to a group of agents in September, referring to the $740,000 median price for a single family home in the San Francisco area.