Trend Chart of the Day: Housing Catfish heading to the bottom
Our August 2011 national housing report indicates signs of a market cool-down after a decent bounce this Spring.
What are sellers doing now? Dropping their ask prices:
The Price of New Listings-to-Ask Price ratio measures the price difference with each week's new sellers entering the market relative to the current market ask price. Percent Price Decreased measures the number of active sellers that have taken at least one price reduction in the last 90 days. Both indicators are moving strongly negative since June.
What does this mean? Lower transaction prices in August and into the Fall. Recently reported gains in national home price indices like the S&P/Case-Shiller will move lower when they report September and October numbers.