These days, housing market conditions depend a lot on where you look. What’s happening in one market can be the exact opposite of what’s happening in another. Home prices are a great example of this. According to one new analysis from the National Association of Realtors, home prices were up in nearly seven of 10 metropolitan areas during the first quarter. But while a majority of metros saw increases, the disparity between areas where prices rose and where they declined was significant. For example, Western cities like San Francisco and San Jose saw prices drop by double-digits during the first quarter, while at the same time Milwaukee and Dayton saw double-digit increases. Lawrence Yun, NAR’s chief economist, says the dividing line is pretty clear. “Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater mortgage rate sensitivity for high-priced homes,” Yun said. It’s true. Regionally, the Midwest and South posted year-over-year increases, while the Northeast was flat and the West dropped 5.3 percent. (source)
