Homes Prices Still Soaring in Northeast

Home prices continued to skyrocket in several Northeastern cities during the first three months of 1988, but the hot New York City market cooled somewhat after the October stock market crash, a real estate trade group said Tuesday.

The National Assn. of Realtors said the median price of existing single-family homes in the Washington metro area jumped to $132,400, a 24.7% increase over the first quarter of 1987.

Hartford, Conn., with an appreciation of 21.8% to a median price of $166,400, and Providence, R.I., with an increase of 19.9% to $123,300, ranked second and third.

“While trouble in the financial markets has affected certain pocket areas, like the area around New York City, the (Northeast) region as a whole is still exceptionally vigorous,” said John A. Tuccillo, the association’s chief economist.

In New York and its suburbs, the median resale price was $186,600, up 10.2% over a year ago but down from the peak of $190,300 in July-September, 1987.

16 Areas Post Declines

Prices also rose sharply in some West Coast cities. The appreciation rate was 18.3% in Los Angeles; 16% in Orange County, which includes Anaheim and Santa Ana; 11.2% in San Francisco, and 10.3% in San Diego.

Nationally, prices rose 4.1% to a median of $88,100, meaning half the houses sold for more and half for less.

Of the 62 metro areas surveyed, 44 posted price increases, while 16 had declines. The information to calculate price changes wasn’t available for two cities.

Most cities suffering price declines were in regions heavily dependent on oil or farming. Oklahoma City posted the largest drop, 9.5%, followed by Houston, 7%, and Denver, 6.9%.

Honolulu, which was included in the survey for the first time, supplanted New York as the costliest housing area in the nation. Median prices in Honolulu were $198,400.

Following Honolulu was Orange County, $183,300; San Francisco, $178,800, and Boston, $176,900.

The least costly housing area was Louisville, Ky., where the median home cost $51,100. Lansing, Mich., was next at $54,400, followed by Des Moines, Iowa, $54,500; Grand Rapids, Mich., $55,400, and Oklahoma City, $56,500.

Although prices increased in most areas, the pace of sales slackened from last year’s record levels in most areas. Sales were off in 28 states and the District of Columbia.

Twenty of the states suffered declines of 10% or more. Of those, nine had drops of more than 20%.

“Although there were more resale decreases than increases, many of the declines were in comparison to a surge in sales during the first quarter of 1987,” Tuccillo said.

Minnesota Had 39.3% Decline

Minnesota, with a 39.3% decline, suffered the biggest setback of any state. Other states with large declines in the pace of sales were Colorado, with a 31.4% drop; Arkansas, down 25.2%, and New Hampshire, down 24.8%.

Sales Called Strong

By contrast, Alaska recorded a 77.1% increase in sales, followed by Kentucky, with a 28.6% rise; Vermont, with a 25.8% pickup; Nevada, up 23.7%, and West Virginia, up 18.9%.

Nationally, existing homes sold at an annual rate of 3.66 million units during the quarter, 8% lower than a year ago.