DS News: Collapse in Home Prices Hits Overvalued Markets Hardest

March 19, 2010

by Julie

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3/19/10 DS News: Collapse in home prices hits overvalued markets hardest

New data released by Altos Research suggests that prices in many of the hardest-hit markets are still on a slippery downward slope. Listing prices fell during the month of February in all 26 major markets in Altos’ study.

The largest monthly decline occurred in San Francisco with prices falling 4.4 percent during the month and down 10.9 percent for the most recent three-month period. San Diego wasn’t far behind, losing 4.2 percent in property values during February. Prices fell by more than two percent on a month-to-month basis in eight other markets. Miami experienced the smallest decline with prices decreasing by 0.2 percent.

Altos correlates the continued declines with inflated inventories and drawn out timelines to move properties once they’ve hit the market.

Listed property inventory jumped in 24 of 26 markets tracked by the company in February. Inventory increases were largest in San Jose, San Francisco, Austin, and San Diego. Nationally inventory is 10 percent lower than last year at this time, though climbing rapidly going into the spring, Altos said.

The company reported that all markets except San Francisco and San Jose had a median days-on-market of 100 or more in February. Chicago edged out Miami as the market experiencing the slowest turnover with a median of 220 days-on-market.

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