In November inventories in 54 metropolitan areas rose to a year-high of 10 months’ supply as sales fell 25.9 percent and prices sagged 1.7 percent from a year ago according to the RE/MAX National Housing Report released today.
“While home sales usually decline in the winter months, we are seeing a larger than normal correction this winter due to several artificial factors like the expired tax credit,” said Margaret Kelly, CEO of RE/MAX, LLC. “Despite predictions about falling home prices, they appear to be remaining stable with several markets reporting significant price increases over last year.”
Of the 54 cities surveyed, 36 showed price increases from last year, 17 were lower and only San Francisco remained unchanged. The top five markets with price increases were Burlington, VT +17.2 percent, Trenton, NJ +15.9 percent, Raleigh, NC +13.3 percent, Washington, DC +9.4 percent and Boston, MA +8.8 percent.
In November the months’ supply, the number of months it would take for the current inventory to be cleared at the current rate of sales, rose to 10 months, which is one full month longer than November 2009. A market balanced between buyers and sellers is assumed to be 6 months. The last such near-balanced market was last April when the supply stood at 5.5 months.
The average number of days from listing to signed contract has risen every month since July. In November, it rose to 93 days from 91 in October. Days on market in November 2010 was seven days longer than November 2009, when it averaged 86 days.
The monthly RE/MAX Report is based on MLS data in approximately 54 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. MLS data is provided by contracted data aggregators, RE/MAX brokerages and regional offices.