In the third quarter, 93 out of 150 metropolitan statistical areas show increases in median existing single-family home prices from a year earlier, including six areas with double-digit annual gains and another 21 metros showing increases of 6 percent or more; 54 had price declines, and three were unchanged.  Regionally, prices rose in both the Northeast and Midwest, as did the national condo price.

Lawrence Yun, NAR chief economist, said the data underscores the fact that all real estate is local.  “Some metro areas are hot while others are experiencing localized problems,” he said.  “The report also shows that home prices in the vast midsection of America, from the Appalachians to the Rockies, are affordable and, perhaps, even undervalued.

“This quarterly metro home price report is the most meaningful long-term series available on price performance because it looks at all of the available transactions in a given area.  Unlike other home price series that are based on county records and mortgage securities, which are collected well after the actual transaction date, NAR has the most timely information directly from multiple listing services.  We also report actual market prices rather than just the percentage changes so people can compare housing values around the country.”

Even with most areas showing improvement, a disruption in higher priced sales impacted the national median existing single-family home price, which was $220,800 in the third quarter, down 2.0 percent from the third quarter of 2006 when the median price was $225,300.  The median is a typical market price where half of the homes sold for more and half sold for less.

NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said consumers need to understand what’s going on in their own area.  “There is no such thing as a national housing market - it doesn’t perform like the equities markets,” he said.  “What’s really important for consumers is to make informed decisions based on individual needs, desires and timelines in a given area.  Most people plan to stay in a home for 10 years, and for buyers with a long-term view, housing is an excellent investment.”

The typical seller purchased their home six years ago, with the median price in the third quarter of 2001 at $159,100.  Despite the dip in the national median price over the past year, the median increase in value for home sellers who bought six years ago is 38.8 percent.  “Nearly every market is showing positive long-term gains, with a home equity accumulation of $61,700 over the past six years for a typical U.S. homeowner,” Gaylord said.  “Even in most of the places that are undergoing a large price decline, long-term increases are quite respectable.  For example, the Sarasota area of Florida is showing a median rise in home value of $112,000 over the typical holding period, and ranks well above norm for overall gains.”

In the third quarter, the largest single-family home price increase was in Bismarck, N.D., area, where the median price of $161,600 rose 15.1 percent from a year ago.  Next was the Salt Lake City area, at $246,700, up 14.1 percent from the third quarter of 2006, followed by Yakima, Wash., where the third quarter median price increased 13.6 percent to $163,200.  Although most of the areas showing price declines were down modestly, three metros experienced double-digit drops.

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