Originally published September 5, 2008 at 12:00 AM | Page modified September 5, 2008 at 9:25 AM
Comments (0)
E-mail article
Print view
Home-price decline may be slowing
Prices of single-family homes fell nationwide in the second quarter, but at a slower rate than in the previous three-month period, an economic-analysis...
Prices of single-family homes fell nationwide in the second quarter, but at a slower rate than in the previous three-month period, an economic-analysis company said Thursday.
Seattle's median price gently bucked that trend, rising to $394,900 in the second quarter, up from $392,700 the quarter before, according to the House Prices in America study by Global Insight.
However, those prices are still below a year ago, when Seattle's median was $403,800 — or 30.4 percent overpriced, by Global Insight's calculations. Last quarter, homes were 18.9 percent overpriced, the company said.
Nationally, six housing markets were overpriced by 35 percent or more, down from 51 markets in 2005. This "extreme overvaluation" is limited to Washington state, Oregon, Hawaii and Utah, the study said.
In this state, Wenatchee is said to be overvalued 35.1 percent, as did Longview, at 37 percent. Bellingham wasn't far behind at 32.2 percent.
The median price of a U.S. home slipped at an annual rate of 5.3 percent in the second quarter, compared with a 6.6 percent decline in the first quarter of this year, Global Insight said.
The most severe declines were in California, Florida and Michigan, representing 43 of the 50 worst-performing metropolitan areas. Other cities in the bottom 50 include Las Vegas, Phoenix and Washington, D.C.
Weak demand, rising foreclosures and fewer sales of high-priced homes have hurt prices in the sagging housing market. But the slowdown in price declines and the amount of extremely overvalued markets are signs that the housing "bubble" has burst, the company said.
Still, real-estate markets are not ready to recover, and there remains a glut of unsold homes on the market — a situation made worse by foreclosures, the company said.
The study examines 330 real-estate markets and bases its regional valuations on factors such as current and historic home prices, interest rates, household incomes and population density.
"Although the markets that were extremely overvalued two years ago are seeing expected price declines, other areas are seeing price declines due to weak economic conditions," said Jeannine Cataldi, senior economist and manager of Global Insight's Regional Real Estate Service. "The market has a lot of inventory to work through before prices will change course."
| Washington prices generally fall | ||||
| Single-family home prices in many Washington cities are falling, but housing is still overpriced, according to Global Insight, an economic analysis firm. | ||||
| First quarter 2008 | Second quarter 2008 | |||
| Median price | Over valuation | Median price | Over valuation | |
| Bellingham | $300,000 | 33.8% | $300,000 | 32.2% |
| Bremerton | $286,100 | 16.9% | $287,700 | 14.8% |
| Longview | $208,900 | 39.1% | $207,800 | 37.0% |
| Mount Vernon | $290,200 | 30.6% | $285,800 | 26.9% |
| Olympia | $258,200 | 22.6% | $257,500 | 21.1% |
| Seattle | $392,700 | 20.2% | $394,900 | 18.9% |
| Tacoma | $278,500 | 23.4% | $278,100 | 21.6% |
| Wenatchee | $255,900 | 35.0% | $259,100 | 35.1% |
| Yakima | $155,000 | 15.1% | $159,200 | 17.9% |
| Source: Global Insight | ||||
Copyright © 2008 The Seattle Times Company
More Business & Technology headlines...
E-mail article
Print view Share:
Digg
Newsvine
![]()
Plasma and LED beware; OLED screens ready to go mainstream
Despite latest uptick, second half of year doesn't look that promising
Q&A : Right cable can work with old camcorder
Summer gas prices should stay put unless ...
Homebodies fuel boob-tube boomlet

Tribal Fireworks Rivalry
The Fourth of July marks a long-standing fireworks rivalry between two clans of a Native-American family in Suquamish.
Entertainment | Top Video | World | Offbeat Video | Sci-Tech
shopping

events for Saturday, Jul. 4th
- IKEA Summer Sale
- REI Summer Sale and Clearance
- Pink Ginger First Anniversary Sale
- Click! Design That Fits July 4th Sale
editors' picks
More shopping guides- Palin resignation leaves questions on 2012 run
- Yakima teacher reprimanded for sending 5-year-old student home with bag of feces in backpack
- Fire sends service providers scrambling
- 6 jurors swear a cop's wife swayed panel in Kent civil rights case
- Going to Gas Works Park? Good luck
- Bicyclist killed Wednesday night is identified
- Powerful sedative found in Michael Jackson's home
- Rob Johnson's double in 11th powers Mariners past Red Sox, 7-6
- Woman accuses Sounders FC player Nate Jaqua of sexual assault, seeks more than $10 million
- Mariners Blog | Mariners, Angels have serious trade deadline advantage over Texas Rangers
- Palin resigning as Alaska governor
640 - Seattle Mariners at Boston Red Sox: 07/04 game thread
343 - Yakima teacher reprimanded for backpack feces
92 - Recession wipes out 9 years of job gains
90 - 6 jurors swear a cop's wife swayed panel in Kent civil rights case
82 - Woman accuses Sounders FC player Nate Jaqua of sexual assault, seeks more than $10 million
72 - Global warming may impede eelgrass growth
68 - Anti-illegal immigration initiative falls short
55 - Rob Johnson ties a club record as Mariners win 7-6 in 11 innings
54 - Palin's Declaration of Independence
50
- Going to Gas Works Park? Good luck
- Liven up Fremont's attempt to break a world record for a 'zombie walk'
- Plasma and LED beware; OLED screens ready to go mainstream
- Lynnwood's City Bank gets tighter scrutiny
- Retail Report | Pet-supply shops grow while other retailers fade
- Yakima teacher reprimanded for sending 5-year-old student home with bag of feces in backpack
- Oregon woman obsessed with rabbits back in jail
- Fire sends service providers scrambling
- Palin resignation leaves questions on 2012 run
- Merchant Marine veterans fight for recognition
