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Home prices in region rise, but slower than national pace


Home prices in region rise, but slower than national pace

JULY 29, 2014    LAST UPDATED: TUESDAY, JULY 29, 2014, 12:06 PM

Home prices in the region rose 4.8 percent in May over a year earlier, slower than the 9.3 percent national increase, the S&P/Case-Shiller home price index said Tuesday. Nationally, housing values continue to rebound after the deepest real estate bust in decades, but not as quickly as last year.

“Home prices rose at their slowest pace since February of last year,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Housing has been turning in mixed economic numbers in the last few months. Prices and sales of existing homes have shown improvement, while construction and sales of new homes continue to lag.”

Both nationally and in the New York metropolitan area, which includes North Jersey, the housing bust wiped out a decade’s worth of gains; single-family home values are now at the same level they were in summer 2004. Values in the region are about 20 percent below their peaks in mid-2006, while values nationally are about 18 percent below that peak.

In Bergen County, single-family home prices ticked down 0.3 percent in May from a year earlier, to a median $450,000. In Passaic, prices dropped 2.6 percent, to a median $285,000. These numbers are from the New Jersey Association of Realtors and are affected by the mix of properties sold in a given month. Case-Shiller does not break out price data by county but is considered a reliable measure because it measures the value of the same properties over time.

Home values in the region have not rebounded as strongly as national numbers because they didn’t fall as far during the housing bust. In addition, while the worst of the foreclosure crisis has passed in most of the nation, New Jersey is still dealing with distressed properties going through the process. Foreclosed properties tend to sell at a significant discount.

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