Global Insight: “The existing median home price data, released by the National Association of Realtors (NAR) for the fourth quarter of 2007, show that all but 11 of the 145 metro areas covered by NAR saw quarter-to-quarter declines from the third quarter to the fourth quarter of 2007. This represents a significant increase in price erosion compared to the third quarter of 2007, in which 80 metros still recorded appreciation quarter-to-quarter. Of the 11 metro areas that saw appreciation in the fourth quarter, only six had consecutive gains in the third and fourth quarters: Kennewick-Richland-Pasco and Yakima in Washington, Oklahoma City, OK, Syracuse, NY, Atlantic City, NJ, and Raleigh, NC.. Aside from the latter two metros, the 11 metros reporting appreciation in the fourth quarter were in the more affordably priced-markets with a median price of less than $200,000 (the U.S. median price was $206,200). The credit crunch has lessened homebuyers’ ability to garner higher priced mortgages, putting downward pressure on the median price. The map below shows the quarter-to-quarter change in the existing median price at a compound annual rate.”