Tuesday, October 4, 2011

Weekly Market Update: October 3, 2011

New Listings: Sellers posted their smallest decline in newly listed homes in three months. The 1,320 new properties were 4.8 percent fewer than the same week last year. What's causing the shift? New listings dropped at this time last year while current levels held fairly even with last week.

Active Supply: The 22.6 percent year-over-year drop in inventory levels broke last week's all-time record. Those shopping for homes will choose from 23,351 properties as opposed to the 30,178 properties at this time last year.

Buyer Demand: The 2010 and 2011 sales trendlines continue to mimic one another, with one important exception. This year's trendline is, on average, 260 sales greater than last year's levels over the past few months.

The Verdict: Falling supply and relatively strong sales volumes should theoretically bolster prices. Again, there's a notable exception: economic uncertainty and squeezed household budgets are all the motivation many buyers need to hunt for bargains – including lower-priced traditional properties as well as great opportunities in the lender-mediated housing segment.

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