18 of 20 Major U.S. Housing Markets Saw Price Declines in November: Report
The listing prices on properties in 18 of 20 major metro markets across the U.S. fell during the month of November, according to a new report released today. San Diego, Calif. experienced the steepest decline of any large metropolitan area in the country last month, with listing prices falling 5.8 percent over the past three months. The report, jointly published by housing analysis and research firms Altos Research and Real IQ, also identified an increase in the time-on-market duration for homes on sale in virtually every market. Miami experienced the longest time-on-market span with an average days-on-market of 137 in November, according to the report, while Minneapolis had the second highest average days-on-market at 125. Listing prices in Los Angeles and San Francisco fell 2 percent in November alone, while Detroit absorbed a decline of 2.1 percent, both firms said. Of all MSAs studied, only Denver displayed a monthly gain in prices while Dallas remained flat. In Las Vegas, Minneapolis and San Francisco, more than half of the listings currently on the market encompassed at least one recorded price reduction; Denver displayed the highest percentage increase in price reduction activity over the past three months. Listed property inventory levels displayed seasonal declines in most markets, according to the report. â€œWhile inventory levels declined in most major markets, the decline in supply could not keep pace with the rapid fall in demand,â€? said Stephen Bedikian, partner and research director for Real IQ. â€œWe expect time-on-market will continue to lengthen and apply pressure on homeowner pricing decisions until buyers regain confidence and demand levels off. So far that point is not in sight.â€? The new report utlilizes data from over one million properties currently listed for sale in 20 metropolitan markets across the country, which Altos Research CEO Michael Simonsen said helps provide data on housing performance closer to real-time. â€œReal estate information tends to be highly latent and subject to a lot of revisions,â€? said Michael Simonsen, CEO and co-founder of Altos Research. â€œIt takes several months before the S&P/Case Shiller Index or the OFHEO data is released for a given month. When you're making investment decisions or trading derivatives these lag times are simply killers.â€? Click here to download the full report.