U.S. Home Sales Poised for Slight Recovery in Spring Selling Season, Says Altos Research Report

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Based on a new U.S. housing report from Altos Research released this past week, the 90-day rolling average still shows monthly declines, week-over-week data are beginning to show signs of improvement this upcoming spring, indicating a good start to what is, typically, the strongest sales period of the calendar year.

In February 2011, the Altos 10-City Price Composite decreased by 2.01% to $433,573. Once again, prices were down in each of the 27 markets tracked by Altos, with the most marked changes seen in San Francisco, Washington, DC, and Detroit. Of note are sharp increases in listing inventory in several major markets, most notably in San Jose (8.81%), Washington, DC (7.99%), and San Francisco (7.96%), which is likely an indicator of sellers hoping to take advantage of heightened buyer activity this season.

March 2011 Highlights

• The Altos 10-City Composite is now at $433,573, off 3.44% over the last 90 days.

• All 27 of the major markets tracked by Altos showed price decreases during the most recent quarter, most significantly in San Francisco and Washington, DC metro markets which showed declines of 9.31% and 8.13%, respectively.

• Housing inventory is up by 3.75% nationwide, though increases should be expected, as sellers hope to capitalize on seasonal upturns in real estate activity.

The Altos Research 20-City Composite

This month's featured chart returns to the median price of the Altos 20-City Composite. Weekly price samples turned above the 90-day rolling average. This trend indicates stronger price resiliency than 2010 though not as strong as the tax credit and stimulus-driven bounce of early 2009.



TRENDS: March Home Prices

During the month of February 2011, home prices continued their pattern of overall decline. However, week-over-week data indicate that this trend may soon change, as small increases are being seen on a national level. Prices, on the whole, were down by 2.01% last month, and down 3.44% over the last 90 days. And while the data over the three-month period show sharp declines in markets like San Francisco, Washington, DC and Detroit, the short-term information likely paints a more accurate picture of conditions moving into spring.



TRENDS: Housing Supply

Over the Holiday Season housing inventory was in sharp decline, a reflection of general buyer inactivity and is expected. In February, there were significant percentage increases California markets, albeit from a low level per capita, relative to the rest of the country. The Altos 10-City Composite is up 3.75% from January lows and up 2.83% over 90-days.

 

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