The large numbers of foreclosure homes for sale in the cities of Phoenix, Las Vegas, Detroit and Orlando have pushed down the nationwide average home sales price in the second quarter based on a report released by the Federal Housing Finance Agency.
Across the U.S., the average price of new and previously-owned houses sold from April to June dropped by 1 percent compared to last year's second quarter.
In the 32 largest metro areas surveyed by FHFA, 16 metro areas posted increases in home prices while 16 areas posted declines.
According to FHFA, if home sales in the metro areas of Phoenix, Las Vegas, Detroit and Orlando were excluded from the survey, the average home sales price nationwide in the second quarter increased by 2.4 percent. Most home sales in the 4 metro areas consisted of distressed properties and foreclosure homes for sale.
Nonetheless, the decline in the average home sales price nationwide was not as sharp as the decline in the first quarter, which suffered a 2.7-percent decline, and the decline in the fourth quarter of 2008, which posted a significant 5.2-percent drop.
This drop in the price decline rate is now seen by analysts as another sign that the housing sector may be getting closer to its road to recovery.
In the San Francisco Bay Area, the average home sales price dropped by 3.9 percent in the second quarter, but the area still holds the distinction of having the highest average home price in the nation. In 2008, the average home sales price in the Bay Area was $622,700. Now, it is $598,200, just below $600,000.
The second most expensive housing market is the Seattle metro area, with the average home sales price reaching $498,600, marking a 6.6-percent rise from $467,700 last year.
San Diego is the third most expensive market despite a 3.9-percent drop in the average price from $514,500 to $ $494,200.
The fourth in the list is Los Angeles, with an average home sales price of $470,900, a two-percent drop from $480,700.
The least expensive housing market is Detroit, with the average sales price dropping from $189,100 to $158,400. The second least expensive market is Las Vegas, with the average price sharply dropping from $319,700 to $181,400.
Out of the 16 metro areas where foreclosure homes for sale pushed down prices in the second quarter, Las Vegas had the biggest decline, with the average price dropping by an overwhelming 43 percent.
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