Home Prices Continue to Decline

According to the National Association of Realtors, the median home price of a house bought in Quarter 1 of 2009 is $169,000. This represents a 13.8% decline from the same period last year. It appears as though people buying homes are buying them for much cheaper.

Not that this is a real surprise.

After all, many first time homebuyers are finding all sorts of incentives to buy — and buy now. These types of buyers generally buy starter homes that are lower in price. Another factor, according to the NAR, is that there are a number of inexpensive homes that represent foreclosures and homes that are almost in foreclosure. In those cases, it is possible to get a home for less, since the seller (whether it is a bank or a distressed homeowner) is motivated.

This information reinforces the idea that now is a good time to purchase a home. Prices are low, and with government incentives and low mortgage interest rates, these buying conditions are practically once in a lifetime — or at least once in 30 years.