September Housing a Mixed Bag
September 2010 brought with it a mixed bag of news. While nationally month-over-month price declines continue, there was hope in the name of diminishing inventory. Lower inventory will help to lessen the impact of weakening buyer demand in many markets. Week-over-week drops in price continue as well into the fall.
The Altos 10-City Composite declined 1.52% from the start of September. For the second consecutive month, home prices were down across the board; with price decreases in 25 of the 26 markets covered. Seasonality is evident in inventory trends, since August, with inventory declines in 14 of the markets covered.
October 2010 Highlights
• The Altos 10-City Composite is now at $465,968, off 1.52% from last month.
• Continuing the trend from August, in September, home prices fell in 25 of the 26 markets covered.
• Cities that felt decreases most sharply were Tampa (-2.27%), San Francisco (-2.96%), and Phoenix (-4.55%).
• Fourteen of the 26 markets covered in this report showed increases in inventory, and nationally, inventory was down 2.24%.
Once again, the Altos 10-City Composite fell in September 2010. Having declined consistently from its peak in 2009, the index was off 1.52% from August, to $465,968. As the market continues to correct, continued price decreases can be expected, likely until the early part of 2011, when the boost of the spring market is felt.
Price decreases were most evident in Phoenix (down 4.55%), Tampa (down 2.27%), and San Francisco (down 2.96%).
©Copyright Altos Research, LLC October 2010