Declining home prices spread across the nation last month, reaching 25 of the 26 top markets tracked by Altos Research. Only Washington, DC, with its large Federal workforce, experienced a gain.
Altos Research’s 10-City Composite price declined 1.6 percent to the first week of November and is off by 3.09 percent over the last three months. Worst hit were Phoenix, Miami and the California cities. The average sales price in San Diego is down 3.28 percent since July. Salt Lake City is down 3.27 percent and Phoenix, down3.11 percent.
While prices are falling, Altos found that inventory is dropping as well, suggesting that the shadow inventory is having a significant depressing impact as the overhang of properties in default and foreclosure is felt in leading markets. Washington, DC had the biggest decrease at more than 16 percent, and inventory rose slightly in Las Vegas, Phoenix, and San Diego. Only three of the 26 markets covered in Altos’ report showed increases in inventory, and nationally inventory was down 4.64 percent in October.
Altos reported that in the first week of November weekly price declines are slowing. “As expected for the seasonal pattern, tracking with our 90-day rolling average, home prices fell, though weekly data as of November 7 show some stability at the national composite, so December’s price declines look to be slowing,” Altos said in a news release.