Hey, it’s monthly real estate stats time, and Jennifer Bjorhus over at the Pioneer Press delivers the goods:
The metro area’s median sale price sank 12.5 percent last month from a year earlier, to $195,060, according to monthly numbers released Wednesday by area Realtor groups. That’s the lowest median sale price since May 2003.
More important, the area’s slide in home values has gained steam, with prices falling harder by the month. In January, values dropped nearly 9 percent year-over-year. In December, they fell 6 percent.
As we’ve said before, this will continue until the excess supply is absorbed (more on this from the most-excellent Calculated Risk) so take the wishful chatter, like the following about affordability and swinging pendulums and whatnot, with a large dose of salt. From the MAAR press release:
"It feels like the pendulum is finally starting to make the big swing," said Kevin Knudsen, MAAR President. "The price corrections we need are working alongside great inventory selection. And the recent FHA loan limit increase is going to have a dramatic and positive effect on buyers searching for secure financing."
Speaking of supply, and also from the press release:
…the number of homes for sale continues to post record levels despite a drop-off in new listing supply. At the end of February, there were 29,842 homes for sale, which amounts to 8.72 homes for each buyer expected during the upcoming month.
As you can see above, in addition the 8.72 homes per buyer, there’s nearly 10 months (9.7) of supply. Remember, annual supply is cyclical, and typically peaks in Sept/Oct then falls off to a holiday nadir in December. The fact the we are already nearly at last year’s peak suggests the pendulum has yet to start retracing its arc.