Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

CoreLogic Data Shows House Price Declines Are Slowing

By

If active listings continue to shrink in number, as long as demand remains stable even at these low levels, then prices should stabilize and begin to rise.

PrintPRINT
CoreLogic's data for January closed house sales (mostly November contracts) shows a year-over-year decline of 3.1% nationally. The month-to-month decline was 1%. However, the 12-month rate of decline has been slowing sharply.



According to CoreLogic, six of the 10 largest metropolitan markets in the US showed year-over-year declines, while four showed increases.

(See full press release here.)

By contrast, Housingtracker.net, which tracks listing prices in real time, showed that January listing prices nationally were up 4% year over year, while being down 1% month to month in January, as active listing inventories tightened. Inventory was down 17% year over year in January.

According to Housingtracker.net, the trend of declining inventory and rising asking prices has continued to the present:
As of March 05, 2012 there were about 858,688 single family and condo homes listed for sale in the 54 metro areas we track. The median asking price of these homes was estimated to be $224,322. Since this time last year, the inventory of homes for sale has decreased by 20.5% and the median price has increased by 3.9%.
Listing prices rose 1.7% month to month in March, while inventory coincidentally also rose by 1.7%. This is a normal seasonal aspect of the housing market as both demand and supply begin to increase after a January low. The increase in March 2011 was also 1.7%. These were the lowest rates of March increase since 2007.

Over the last six years, subsequently reported housing prices have tracked real-time listing prices with a close correlation. This is the first time that listing prices have had a positive divergence versus subsequently revealed sale prices for the same period. Whether this reflects the reduction in supply or newly unrealistic seller expectations is not yet known, but if active listings continue to shrink in number, as long as demand remains stable even at these low levels, then prices should stabilize and begin to rise. The year-over-year rate of change data seems to support this trend.


I address the issue of whether the housing market has bottomed here.

Editor's Note: Try Wall Street Examiner's Professional Edition risk free for 30 days. Click here for more information.

Twitter: @Lee_Adler
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE