Recent government actions to reduce mortgage rates and slow the pace of foreclosures could finally start to stem the decline but we don't expect to see major changes until at least mid-2009.
Mountain View, CA (PRWEB) December 10, 2008 - The Altos 10-
City Composite Price Index showed a decline in asking prices of 0.8% in November and 2.4% for the past three months. Prices of properties listed for-sale fell in 20 of 26 major markets according to the Real-Time Housing Market Report, published by Altos Research, the premier source for real-time real estate research, and market analysis consultancy Real IQ.
Asking prices fell at the fastest rate in Las Vegas - down 3.3% during November - and 6.9% over the most recent three-month period. This marks the eighth consecutive month that Las Vegas has posted the fastest rate of declining prices among major markets. Listing prices rose at the fastest rate in Houston - up 2.4% in November. Denver, Dallas and Houston are now the only markets showing three months of sequential price increases.
"Tight credit, job losses and plunging consumer confidence continued to pressure listing prices in most major markets during November," said Michael Simonsen, CEO and co-founder of Altos Research. "Recent government actions to reduce mortgage rates and slow the pace of foreclosures could finally start to stem the decline but we don't expect to see major changes until at least mid-2009."
Inventory levels declined in 24 of 26 major markets with only Phoenix and Las Vegas registering small increases. Across the 10-City Composite Index markets, inventory declined by 5.1% in November and 7.5% over the past three months. Inventory fell by the largest amounts in Boston, San Francisco and Seattle. "Inventory levels have continued to decline for many months and November was no exception," said Stephen Bedikian, partner and research director for Real IQ. "The real estate industry continues to work through the large inventory overhang but only very slowly."
Twenty-four of 26 markets had an average days-on-market of 100 or more. The average days-on-market rose in all but one market - Las Vegas - where it was effectively flat during November. By far, the market with the slowest rate of inventory turnover was Miami at an average of 179 days-on-market. Miami has experienced the slowest market turnover in every month since September 2007. San Francisco enjoyed the fastest rate of turnover with an average days-on-market of 92.
The report examines housing pricing, inventory levels and market conditions in 31 major U.S. metropolitan statistical areas (MSAs): Atlanta, Austin, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Houston, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa, and Washington, DC. The Real-Time Real Estate Report is released every month.
About Altos Research
Altos Research LLC pioneered real-time real estate research. Founded in 2005, the company's information products serve investors, traders, and thousands of real estate professionals. Because real estate data is traditionally obscure and highly latent, Altos built the Real-Time Market Intelligence(TM) platform to monitor dozens of housing market metrics as they are right now in local markets across the country. The company publishes real estate reports and real estate data each week for thousands of zip codes around the country.