October 11, 2011 (Jeff Alan)
Housing prices fell for the third consecutive month and are continuing to trend downward according to Altos Research’s October Real-Time National Housing Market Update, meanwhile, the mass liquidation of foreclosures that never occurred, leaves housing inventories declining.
Sixteen of the 26 markets in the national report posted declining prices in September, down from 17 in August. Two months ago in July, only seven of the markets reported a price decline and in June, only one market posted a monthly decline.
In the 10-City National Composite, the median price declined for the third consecutive month to $444,045 in September, down from $446,796 in August.
Ten of the 26 metropolitan areas posted monthly price increases with the largest increases posted in Salt Lake City, with a gain of 1.68 percent, and Phoenix, which posted a gain of 1.36 percent
The markets that posted the largest declines were San Jose, with a 1.42 percent decline, and Chicago, with a 1.35 percent price decline.
Altos Research’s weekly sample (7 day) of housing inventory for September shows a continuing downward trend of inventories first observed in July, a traditional seasonal pattern heading into the winter months.
Housing inventories were down 1.89 percent in September with overall inventory down 2.25 percent over the last three months. All 26 of the metropolitan areas posted a decline in inventory.
Tampa experienced the largest decline in housing inventory, posting a 9.86 percent drop in houses for sale in the last month. In August, half of the metropolitan areas showed a decline and half showed an increase in monthly inventory.
The large-scale liquidation of foreclosure portfolios has yet to materialize as servicers are modifying more loans to keep homeowners in their homes. Despite well over a million properties in the shadow inventory, nothing indicates the flood of foreclosures will hit the market soon.
Tags: Altos Research, housing prices, housing inventory, median price, 26 markets, 10-city Composite, 20-city Composite