US home sale prices drop in August
Home prices in the United States fell 3.6 percent in August from a year earlier as record foreclosures and rising unemployment depressed demand.
The region including Nevada and Arizona led the decline, with prices dropping 7.9 percent, followed by a 6.5 percent decrease in the area including California, the Federal Housing Finance Agency said. Prices fell 0.3 percent in August from July, the first decrease in seven months.
Lower mortgage rates and a government tax credit for first-time buyers haven’t been enough to consistently lift home prices as companies cut jobs and banks seize property from delinquent borrowers. Foreclosure filings climbed to a record in the third quarter, according to RealtyTrac Inc. .
“The state of the housing market is going to be dependent on employment,’’ said Jay Brinkmann, chief economist of the Mortgage Bankers Association.
Even with lower mortgage rates, US home prices probably will fall 13 percent this year to a median of $172,700, the National Association of Realtors said.
