NAR: Home prices reflect current sales, not market value

WASHINGTON – May 18, 2009 – After dropping for two years, home prices appear to be bottoming out, and any further declines would be an overcorrection, National Association of Realtors®’ (NAR) Chief Economist Lawrence Yun told thousands of practitioners at the Realtors Midyear Legislative Meetings in Washington, D.C., last week.

The median national home price today is about $169,000, down almost 14 percent from a year ago and an estimated 30 percent from its peak. Today’s prices are justified by the fundamentals of the economy and may even represent an undervaluation, Yun said.