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NEW YORK (CNNMoney.com) -- Home prices fell 12.4% during the fourth quarter of 2008, the largest year-over-year decline since the National Association of Realtors began keeping comprehensive records in 1979.

The median price for a U.S. home sold during the fourth quarter of 2008 fell to $180,100, down from $205,700 during the last quarter of 2007.

Distressed properties, the foreclosures and short sales that have flooded the market, accounted for 45% of all deals. That has driven sales volume up in Nevada, California and other states hit hard by foreclosures, but these heavily discounted homes have also pushed median prices down.

People are responding to discounted prices and are slowly absorbing the excess inventory, said NAR President Charles McMillan. Buyers clearly see value in today\'s pricing.

Pain is widespread
The vast majority of metropolitan areas, 134 out of 153, recorded price declines compared with the last quarter of 2007.

Home markets are weak just about everywhere, said Pat Newport, an analyst with HIS Global Insight, but in a few states, distressed sales are driving transactions.

Cape Coral-Ft. Myers, Fla., which has the third highest rate of foreclosure filings in the nation, according to RealtyTrac, prices fell a devastating 50.8% for the year, to $110,900 from $225,300. That was the most precipitous plunge for any metro area.

In Saginaw, Mich., prices fell 41.4%; Riverside-San Bernardino, Calif., prices dropped 40.8%; and San Jose, Calif., prices declined 37.7%.

The Beaumont-Port Arthur area of Texas bucked the national trend. Its median home price jumped 16.7% to $132,600 - the highest increase in the nation. Other winners included Bloomington, Ill., up 9.6%; Dover, Del., up 6.5%; and Bismarck, M.D., up 6%.

The high number of distressed sales pushed prices down for several reasons, according to Lawrence Yun, chief economist for NAR. For one thing, many sales were in low- and moderate-income housing developments where buyers during the boom years financed their purchases using subprime mortgages. In higher-end areas, fewer exotic mortgages were used.

Take Orange County, Calif., said Yun. It\'s the lower priced areas there where homes are selling. The high priced areas along the coast are not. That has skewed the results.

And the high number of foreclosures means banks are willing to slash prices deeply to move inventory. Many of the properties they\'ve obtained through repossessions now sit vacant, soaking up lender money for maintenance, heating, property taxes and insurance. The banks willingly take lower prices to end those cash outlays, which brings down prices even for normal sellers.

Then there\'s also what Yun calls a frozen jumbo-mortgage lending market, which has also slowed sales of higher priced homes and reduced median prices.

The good news is that bargain prices are bringing many new buyers into the market.Many are first-time homebuyers who were priced out of the market during the boom, Yun said.

Stimulus help
NAR is hoping a piece of the stimulus bill before Congress will build on that momentum and provide an extra incentive for buyers.

Assuming housing provisions in the economic stimulus package are quickly enacted and provide enough encouragement for homebuyers, we could see a quick lift in home sales for the critical spring home-buying season, said Yun.

On Thursday, it appeared that the final iteration of the homebuyer\'s tax credit, which had very different provisions in the House and Senate versions of the stimulus package, was shaping up to be closer to the House bill, according to Yun.

That means a credit of $7,500, perhaps $8,000, or 10% of home price for first-time homebuyers. This windfall will not have to be repaid by homebuyers and can be taken off 2008 taxes. NAR estimates that could draw in an additional half million buyers this year.

It could help reduce the high inventory of homes for sale, said Yun, and get housing markets moving again. It\'s hard to get the economy back to growth until that happened.

First Published: February 12, 2009: 10:02 AM ET

NAR 4th quarter 2008 home prices
Single-family Homes
Apartment Condo-Coops
Total Home Sales
Metro Area Median Price
4Q 2008 % Change
(1-yr)
Akron, OH $86,100 -21.1%
Albany-Schenectady-Troy, NY $193,100 -3.6%
Albuquerque, NM $183,700 -6.2%
Allentown-Bethlehem-Easton, PA-NJ $238,000 -3.4%
Amarillo, TX $122,600 2.0%
Anaheim-Santa Ana, CA (Orange Co.) $464,800 -30.8%
Appleton, WI $127,600 -2.5%
Atlanta-Sandy Springs-Marietta, GA $129,200 -21.4%
Atlantic City, NJ $229,100 -17.8%
Austin-Round Rock, TX $184,800 -0.1%
Baltimore-Towson, MD $260,100 -5.5%
Barnstable Town, MA $325,300 -14.9%
Baton Rouge, LA $156,400 -7.8%
Beaumont-Port Arthur, TX $132,600 16.7%
Binghamton, NY $105,800 -3.7%
Birmingham-Hoover, AL $135,400 -13.3%
Bismarck, ND $164,300 6.0%
Bloomington-Normal, IL $159,300 9.6%
Boise City-Nampa, ID $168,800 -14.7%
Boston-Cambridge-Quincy, MA-NH** $335,700 -11.8%
Boulder, CO $324,400 -12.6%
Bridgeport-Stamford-Norwalk, CT $379,700 -17.5%
Buffalo-Niagara Falls, NY $106,200 0.8%
Canton-Massillon, OH $80,400 -18.0%
Cape Coral-Fort Myers, FL $110,900 -50.8%
Cedar Rapids, IA $136,900 1.5%
Champaign-Urbana, IL $132,000 -8.1%
Charleston-North Charleston, SC $193,800 -5.2%
Charleston, WV $124,800 1.5%
Charlotte-Gastonia-Concord, NC-SC $186,300 -9.0%
Chattanooga, TN-GA $123,800 1.8%
Chicago-Naperville-Joliet, IL $217,800 -16.6%
Cincinnati-Middletown, OH-KY-IN $116,000 -12.4%
Cleveland-Elyria-Mentor, OH $88,300 -25.5%
Colordo Springs, CO $187,000 -11.2%
Columbia, MO $138,100 -4.2%
Columbia, SC $139,200 -3.9%
Columbus, OH $126,500 -7.8%
Corpus Christi, TX $134,000 -2.8%
Cumberland, MD-WV $96,900 -16.9%
Dallas-Fort Worth-Arlington, TX $138,000 -4.8%
Danville, IL N/A N/A
Davenport-Moline-Rock Island, IA-IL $98,400 -3.6%
Dayton, OH $87,800 -17.6%
Decatur, IL $79,300 5.9%
Deltona-Daytona Beach-Ormond Beach, FL $143,600 -20.7%
Denver-Aurora, CO $200,800 -12.7%
Des Moines, IA $149,700 -1.9%
Detroit-Warren-Livonia, MI N/A N/A
Dover, DE $212,500 6.5%
Durham, NC $165,600 -7.0%
Elmira, NY $80,900 -0.4%
El Paso, TX $140,700 5.3%
Erie, PA $95,200 -3.4%
Eugene-Springfield, OR $212,800 -10.4%
Fargo, ND-MN $140,100 -1.1%
Farmington, NM $185,000 -0.8%
Florence, SC $119,100 1.9%
Ft. Wayne, IN $88,600 -2.5%
Gainesville, FL $174,000 -11.5%
Gary-Hammond, IN $115,100 -7.6%
Glens Falls, NY $147,600 -9.9%
Grand Rapids, MI $80,500 -35.2%
Green Bay, WI $146,600 -1.5%
Greensboro-High Point, NC $135,400 -10.2%
Greenville, SC $146,900 -5.5%
Gulfport-Biloxi, MS $129,500 -13.9%
Hagerstown-Martinsburg, MD-WV $171,400 -10.8%
Hartford-West Hartford-East Hartford, CT $233,700 -9.4%
Honolulu, HI $610,000 -2.4%
Houston-Baytown-Sugar Land, TX $142,100 -5.5%
Indianapolis, IN $100,200 -12.1%
Jackson, MS $126,600 4.7%
Jacksonville, FL $160,700 -9.5%
Kalamazoo-Portage, MI N/A N/A
Kankakee-Bradley, IL $125,600 1.0%
Kansas City, MO-KS $131,000 -11.6%
Kennewick-Richland-Pasco, WA $165,900 -3.8%
Kingston, NY $224,000 -9.0%
Knoxville, TN $141,700 -8.6%
Lansing-E.Lansing, MI $80,000 -27.0%
Las Vegas-Paradise, NV $181,700 -33.6%
Lexington-Fayette,KY $138,200 -3.3%
Lincoln, NE $133,100 -3.6%
Little Rock-N. Little Rock, AR $125,200 -1.8%
Los Angeles-Long Beach-Santa Ana, CA $354,300 -31.4%
Louisville, KY-IN $124,000 -6.8%
Madison, WI $227,000 -0.003
Manchester-Nashua, NH $238,600 N/A
Memphis, TN-MS-AR $100,200 -19.4%
Miami-Fort Lauderdale-Miami Beach, FL $234,200 -32.3%
Milwaukee-Waukesha-West Allis, WI $194,900 -11.2%
Minneapolis-St. Paul-Bloomington, MN-WI $188,600 -13.2%
Mobile, AL $125,000 -9.0%
Montgomery, AL $126,300 -11.9%
Nashville-Davidson--Murfreesboro, TN N/A N/A
New Haven-Milford, CT $240,400 -10.6%
New Orleans-Metairie-Kenner, LA $154,900 -2.1%
New York-Northern New Jersey-Long Island, NY-NJ-PA $390,400 -14.6%
New York-Wayne-White Plains, NY-NJ $458,600 -11.7%
NY: Edison, NJ $343,600 -7.2%
NY: Nassau-Suffolk, NY $381,300 -17.4%
NY: Newark-Union, NJ-PA $373,600 -14.3%
Norwich-New London, CT $223,100 -11.6%
Ocala, FL $121,700 -21.5%
Oklahoma City, OK $124,200 -7.9%
Omaha, NE-IA $129,700 -4.4%
Orlando, FL $175,200 -27.1%
Palm Bay-Melbourne-Titusville, FL $123,600 -18.3%
Pensacola-Ferry Pass-Brent, FL $151,700 -3.0%
Peoria, IL $117,200 -1.1%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD $212,500 -6.3%
Phoenix-Mesa-Scottsdale, AZ $155,900 -35.5%
Pittsburgh, PA $109,100 -6.7%
Pittsfield, MA $206,000 1.7%
Portland-South Portland-Biddeford, ME $214,500 -11.4%
Portland-Vancouver-Beaverton, OR-WA $264,500 -9.0%
Providence-New Bedford-Fall River, RI-MA $224,500 -17.8%
Raleigh-Cary, NC $230,900 -2.0%
Reading, PA $155,100 1.0%
Reno-Sparks, NV $231,200 -23.3%
Richmond, VA $199,400 -11.7%
Riverside-San Bernardino-Ontario, CA $201,300 -40.8%
Rochester, NY $112,500 -6.9%
Rockford, IL $111,500 -1.5%
Sacramento--Arden-Arcade--Roseville, CA $187,900 -36.9%
Saginaw-Saginaw Township North, MI $43,900 -41.4%
Saint Louis, MO-IL $113,700 -14.8%
Salem, OR $198,000 -14.4%
Salt Lake City, UT $225,400 -1.6%
San Antonio, TX $143,400 -5.5%
San Diego-Carlsbad-San Marcos, CA $332,800 -36.4%
San Francisco-Oakland-Fremont, CA $487,100 -37.4%
San Jose-Sunnyvale-Santa Clara, CA $525,000 -37.7%
Sarasota-Bradenton-Venice, FL $178,100 -35.0%
Seattle-Tacoma-Bellevue, WA $325,900 -13.7%
Shreveport-Bossier City, LA $139,200 2.8%
Sioux Falls, SD $142,400 Unch
South Bend-Mishawaka, IN $80,800 -6.4%
Spartanburg, SC $120,800 -0.8%
Spokane, WA $185,900 -4.2%
Springfield, IL $96,700 -11.0%
Springfield, MA $186,400 -9.7%
Springfield, MO $117,100 -3.0%
Syracuse, NY $114,100 -9.7%
Tallahassee, FL $150,100 -17.0%
Tampa-St.Petersburg-Clearwater, FL $151,500 -24.9%
Toledo, OH $75,600 -27.3%
Topeka, KS $104,800 -6.7%
Trenton-Ewing, NJ $247,800 -19.2%
Tucson, AZ $185,900 -21.2%
Tulsa, OK N/A N/A
Virginia Beach-Norfolk-Newport News, VA-NC $222,000 -5.9%
Washington-Arlington-Alexandria, DC-VA-MD-WV $295,100 -26.2%
Waterloo/Cedar Falls, IA $105,200 -8.8%
Wichita, KS $118,200 3.9%
Worcester, MA $217,000 -16.2%
Yakima, WA $145,900 -14.4%
Youngstown-Warren-Boardman, OH-PA $61,700 -0.15%
U.S. $180,100 -12.4%
NE $248,800 -4.7%
MW $139,500 -10.6%
SO $158,300 -7.5%
WE $243,200 -25.1%

Note1: California prices provided by the California Association of REALTORS® *All areas are metropolitan statistical areas (MSA) as defined by the US Office of Management and Budget as of 2004.
They include the named central city and surrounding areas. N/A Not Available p Preliminary r Revised
© 2008 National Association of REALTORS®
Metro Area Median Price
4Q 2008 % Change
(1-yr)
Albuquerque, NM $158,900 8.6%
Atlanta-Sandy Springs-Marietta, GA N/A N/A
Austin-Round Rock, TX $155,100 -10.5%
Baltimore-Towson, MD $222,800 -5.4%
Bismarck, ND $134,900 8.0%
Boston-Cambridge-Quincy, MA-NH $272,900 -8.1%
Boulder, CO $204,800 -3.7%
Bridgeport-Stamford-Norwalk, CT $232,900 -10.5%
Cape Coral-Fort Myers, FL $169,900 -16.0%
Chicago-Naperville-Joliet, IL $209,400 -11.4%
Cincinnati-Middletown, OH-KY-IN $122,500 -2.5%
Cleveland-Elyria-Mentor, OH N/A N/A
Colorado Springs, CO $140,000 -3.2%
Columbus, OH $118,900 -9.9%
Dallas-Fort Worth-Arlington, TX $149,500 14.1%
Greensboro-High Point, NC $108,000 -7.5%
Hartford-West Hartford-East Hartford, CT $163,800 -9.3%
Honolulu, HI $315,600 -1.4%
Houston-Baytown-Sugar Land, TX $124,500 -8.1%
Indianapolis, IN $117,500 0.7%
Jacksonville, FL $126,200 -11.6%
Knoxville, TN $145,900 -9.3%
Las Vegas-Paradise, NV $91,200 -48.9%
Los Angeles-Long Beach-Santa Ana, CA $240,600 -33.8%
Louisville, KY-IN $116,100 -7.5%
Madison, WI $163,900 -8.7%
Manchester-Nashua, NH $174,900 N/A
Miami-Fort Lauderdale-Miami Beach, FL $132,900 -31.6%
Milwaukee-Waukesha-West Allis, WI $172,400 0.2%
New Haven-Milford, CT $169,600 -6.2%
New Orleans-Metairie-Kenner, LA $171,500 -1.0%
Norwich-New London, CT $160,000 -12.4%
New York-Wayne-White Plains, NY-NJ $292,600 -5.9%
NY: Newark-Union, NJ-PA $279,300 -11.4%
NY:Edison, NJ $262,800 -4.2%
NY:Nassau-Suffolk, NY $231,800 -7.0%
Palm Bay-Melbourne-Titusville, FL $88,500 -29.0%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD $210,200 10.2%
Phoenix-Mesa-Scottsdale, AZ $138,900 -24.1%
Portland-South Portland-Biddeford, ME $199,200 -1.0%
Portland-Vancouver-Beaverton, OR-WA $194,400 -6.2%
Providence-New Bedford-Fall River, RI-MA $202,800 -8.8%
Reno-Sparks, NV $114,100 -39.0%
Richmond, VA $173,300 -7.7%
Riverside-San Bernardino-Ontario, CA N/A N/A
Rochester, NY $109,100 -11.1%
Sacramento--Arden-Arcade--Roseville, CA $94,700 -55.8%
Salt Lake City, UT $156,300 -4.3%
San Diego-Carlsbad-San Marcos, CA $190,100 -41.9%
San Francisco-Oakland-Fremont, CA $391,900 -34.2%
Sarasota-Bradenton-Venice, FL $216,600 -20.4%
Springfield, MA $149,500 -2.3%
Syracuse, NY N/A N/A
Tampa-St. Petersburg-Clearwater, FL $125,000 -27.1%
Toledo, OH $153,900 11.4%
Trenton-Ewing, NJ $219,100 -10.3%
Tucson, AZ $115,500 -9.8%
Virginia Beach-Norfolk-Newport News, VA-NC $168,600 -3.9%
Washington-Arlington-Alexandria, DC-VA-MD-WV $242,100 -16.0%
Wichita, KS $111,400 1.4%
Worcester, MA $153,500 -27.9%
U.S. $186,000 -15.8%
NE $232,200 -6.3%
MW $173,900 -10.1%
SO $150,000 -17.0%
WE $175,800 -30.1%

State Total Sales % Change(1-yr)
ALABAMA $68,800 -35.1%
ALASKA $20,000 -16.7%
ARIZONA $116,400 42.6%
ARKANSAS $59,200 -20.9%
CALIFORNIA $563,600 84.7%
COLORADO $100,000 -9.7%
CONNECTICUT $43,200 -20.6%
DELAWARE $11,600 -14.7%
District of Columbia $6,800 -15.0%
FLORIDA $273,200 12.5%
GEORGIA $168,400 -9.9%
HAWAII $16,800 -30.0%
IDAHO $30,900 -21.8%
ILLINOIS $165,600 -22.8%
INDIANA $105,200 -19.8%
IOWA $57,200 -5.9%
KANSAS $55,200 -17.9%
KENTUCKY $68,400 -19.0%
LOUISIANA $46,800 -29.1%
MAINE $20,000 -13.8%
MARYLAND $58,400 -14.6%
MASSACHUSETTS $103,200 -6.9%
MICHIGAN $153,600 -12.1%
MINNESOTA $95,600 7.2%
MISSISSIPPI $44,400 -22.9%
MISSOURI $94,000 -13.6%
MONTANA $17,600 -21.4%
NEBRASKA $28,800 -8.9%
NEVADA $80,400 133.7%
NEW HAMPSHIRE $18,400 N/A
NEW JERSEY $101,100 -15.3%
NEW MEXICO $27,200 -20.9%
NEW YORK $237,200 -15.2%
NORTH CAROLINA $121,200 -34.7%
NORTH DAKOTA $11,200 -22.2%
OHIO $217,600 -7.6%
OKLAHOMA $80,800 -16.5%
OREGON $49,200 -8.9%
PENNSYLVANIA $178,800 -9.7%
RHODE ISLAND $12,400 -8.8%
SOUTH CAROLINA $63,200 -31.0%
SOUTH DAKOTA $16,000 -18.4%
TENNESSEE $102,800 -26.1%
TEXAS $421,200 -18.1%
UTAH $26,000 -24.4%
VERMONT $8,400 -34.4%
VIRGINIA $105,200 3.1%
WASHINGTON $76,800 -35.6%
WEST VIRGINIA $22,800 -17.4%
WISCONSIN $79,600 -17.4%
WYOMING $7,200 -14.3%
United States $4,700,000 -5.9%
Northeast $760,000 -13.9%
Midwest $1,040,000 -12.4%
South $1,733,000 -13.4%
West $1,173,000 26.5%

Home prices in record plunge
National Association of Realtors reports that home prices dropped a record 12.4% in the final quarter of 2008 - the biggest year-over-year decline in 30 years.