Rising Inventory Points to Lower Home Prices

October 26, 2010 No Comments »


A quarterly survey of 28 major metropolitan areas revealed that the supply of unsold homes continued to rise during the third quarter, per the WSJ.

The number of homes listed for sale at the end of September rose a staggering 50.6 percent in Sacramento from a year ago.

While that was the worst year-over-over increase, the housing supply grew to just 3.8 months to clear, the lowest of all metros surveyed.

Housing inventory was highest in Charlotte, North Carolina, at 16 months, followed by Long Island at 15 months and Nashville at 14.7 months.

Home Prices Declined Most in Miami

Miami saw the worst year-over-year price change at -15.0 percent, followed by Atlanta at -13.2 percent and Phoenix at -12.9 percent.

Home prices increased the most in San Diego over the past year, with the Southern California metro registering a 4.2 percent gain.

It was followed by St. Louis at 3.6 percent and Orange County, California at 3.1 percent.

Miami was also the worst metro in terms of delinquent mortgage payments (30+ days), with 28.4 percent overdue, followed by Orlando at 24.4 percent and Las Vegas at 23.6 percent.

Past due loan rates were lowest in Denver (8.1%), Minneapolis (8.2%) and Portland, Oregon (8.6%).

Keep in mind this data doesn’t include the so-called shadow inventory, or homes owned by banks and mortgage lenders that are not yet on the market.

Then there are the sidelined sellers to deal with, which will further depress home prices.

Translation: No rush to buy…

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