Home Prices Fall a Record 15.6%

Median home prices fell a record 15.6% during the three months ended June 30, compared to the same period in 2008.

There is some good news though: According to a survey from the National Association of Realtors, the median home price rose 4% compared to the first quarter of 2009 — to $174,100 from $167,300.

The increase in median price was not a surprise, representing, as it did, the traditionally strong spring selling season. But the jump did offer the prospect that the worst of the price declines may be behind us.

Condo prices have taken an even more severe beating. They fell 19.8% year-over-year, but rose 3.6% quarter-over-quarter.

The drop in home and condo prices, along with economists saying the recession is over, sends mixed signals throughout the real estate industry, but should be warning “would-be homebuyers” that we may have passed the ideal bottom in a lot of markets, and continuing to delay their home purchase could cost them even more, especially in light of recently rising mortgage interest rates.