Home prices fell for the fifth consecutive month in August and are anticipated to decline into the fall as the housing market, once white-hot, continues its fall from grace.
The average home price dipped by 1.7 percent, from $229,000 in August 2005 to $225,000 last month, according to figures released Monday by the National Association of Realtors.
“This is the price correction we’ve been expecting,” said David Lereah, chief economist for the National Association of Realtors.
“With sales stabilizing, we should go back to positive growth early next year.”
Locally, sales patterns mirror national trends, but at much higher prices.
In Northern Virginia, for example, the average sale price dropped for the same period by nearly 4 percent, from $558,880 to $537,196.
Sales are expected to level off in the near future and head toward single-digit appreciation, but not reach the frantic double-digit growth the region saw in the last five years.
“Our battle cry is it’s still a good time to buy a house,” said Jill Landsman, a spokeswoman for the Northern Virginia Association of Realtors.
“Interest rates have stabilized … and the price of gas is going down. All of that gives prospective buyers some confidence.”
