(Our Mid-Cities Report provides a glimpse into real estate market trends for mid-sized US markets not commonly reported in the media. Click here for more background on this composite.)
As we analyze mid-sized cities like Pittsburgh and Memphis, differences continue to emerge as compared to the S&P/Case-Shiller 20-city composite.
“Price of New Listings” and “Percent Price Decreased” are two of our most leading indicators of future transaction prices and volume.
Price of New Listings are up slightly while this indicator remains in negative territory for the Case-Shiller markets:
Price Reductions – measured as the number of active listings with at least one price reduction in the most recent 90-day period – are lower in the Mid-Cities Composite, inching into negative ground in the last two months (a good thing – fewer price reductions usually means stronger demand on a relative basis):
The component metros of the Mid-Cities composite typically avoided the big sub-prime boom and bust – there’s been considerably lower volatility in these markets. While at an absolute level, the differences between these two composites are slight, they are distinctive and important to watch as the housing market continues its uneven recovery (See: Catfish Recovery: The Future of US Housing).