Inventory Levels Stay Neutral – Price Appreciation is Moderating.
In October, the number of homes available for sale, including new listings, closed sales and homes placed under Contract saw modest fluctuation from last month, but over-all no evidence of significant change. The result is that the number of homes for sale based on closed sales has, for the last two months, hovered in the mid 4 month range. It’s a sign that as we kick into the winter selling season, with no evidence of a surge of new listings coming to market, there will not be many choices. Will this translate into ever increasing prices? I think modestly so, but not at the double digit pace we witnessed this past year. The fact is, in the face of relatively low inventory, the past month prices decreased. In October the average price per square foot decreased 10% to $122/sq. ft. from the prior month; the median sold price decreased 3% to $162,000; and the average sold price went down 12% to $192,000. Temporary price depreciation in the face of low inventory of homes for sale reflects a market that is resisting continued double digit price appreciation. Following the surge of the past 1 ½ years, it is more likely reflective of a housing market which is searching for balance, and price appreciation consistent with the historical norm of 3-5%.
October 2013 Average Sold Price per Square Footage is Depreciating
Average Sold Price per Square Footage in October 2013: $122.
Down 10.1% compared to last month.
October 2013 Median Sold Price is Depreciating Avg. Median Sold Price in October 2013: $163,000
Down 3% compared to last month; Down 6.9% compared to the last year.
October 2013 Average Sold Price is Depreciating Avg. Sold Price (in thousand) in October 2013: $192,000
Down 11.9% compared to last month; Down 5.9% compared to the last year.
