August 22, 2011 (Jeff Alan)
Housing prices are trending downward and rising inventories indicate that the spring/summer selling season is gradually cooling as housing demand shifts and prices decline “to bump along the bottom of the pond again” according to Altos Research.
Seven of the 26 markets in the report posted declining prices in July, up from one the previous month and 20 of the markets posted rising inventories.
The national index reports that the median price for a home was $450,176 in July, down from $450,894 in June. The biggest monthly gainers in price were Detroit (2.38%), Denver (1.47%), and Tampa (1.1%)
Last month, only one market, Las Vegas, posted a decline in prices, this month seven markets reported declining home prices. New York posted the biggest drop in prices with a decline of 1.69 percent, followed by Boston with a decline of 1.18 percent.
Altos Research’s weekly sample (7 day) for July shows a continuing flattening of home prices first observed June, an indication of further declining in prices during the fall.
Housing inventories were up 1.59 percent in July with overall inventory over the last three months up 5.03 percent. In last months report, 11 of the 26 markets reported rising inventories at the three month level, this month 21 of the 26 markets reported rising inventories.
Housing supply increased in 20 of the 26 markets with the largest increase in housing inventory reported in Boston (4.89%), New York (3.55%), and Minneapolis (2.58%), while the largest declines in housing inventory occurred in Phoenix (-6.82%), Tampa (-6.60%), and Miami (-2.20%).
Tags: Altos Research, housing prices, housing inventory, median price, positive trend, seasonal cooling, 26 markets