Northeast home sales, prices fall in September

NEW YORK - Existing home sales in the Northeast fell more than 1 percent in September from last year, while the median sales price in the region sank 5.4 percent to $246,800 - the lowest level in four years, the National Association of Realtors said yesterday.

Sales in the Northeast were weaker than the national figures, but price declines were milder. Nationwide, sales - without adjusting for seasonal factors - rose 7.8 percent in September from a year ago, while the median price slid 9 percent to $191,600.

The September figures for nine major cities in the Northeast were vastly improved over last year, according to the Associated Press-Re/Max Monthly Housing Report, also released yesterday.

Only three of the nine Northeast metro areas surveyed recorded a drop in sales of more than 20 percent. The report analyzed sales transactions recorded by all real estate agents in those areas, regardless of company affiliation.

The drop in Northeast sales belies the relative health of the region's housing market compared to other parts of the country, said James Diffley, group managing director of Global Insight's regional services group.

The turmoil on Wall Street, however, could unravel the housing markets in New Jersey, the suburbs of New York, and lower Connecticut, which so far have been relatively resilient.

"The New York economy, up until this point, has performed better than the rest of the country in many ways, but now we have the crisis coming back," Diffley said. "A drop in income and a severe drop in employment will hurt housing demand."

The best Northeast values may be in New England, where prices decreased the most last month. Providence and Manchester, N.H., each posted double-digit price declines, while home values in Augusta, Maine, dropped nearly 10 percent, the AP-Re/Max report showed.

Providence is contending with rising unemployment, currently at 8.8 percent, and high foreclosures, which are putting a lid on price gains, said Ron Phipps of Phipps Realty in Warwick, R.I.