Housing Market Cools Off Along With Fall Temperatures
ZipRealty’s Housing Trends Report for the month of September 2013 paints a far brighter overall picture of the real estate market in comparison to the same time last year, although our new data also shows that price and transaction trends have begun to moderate.
The September 2013 median sales price of approximately $270,000 across the 24 metro areas analyzed by ZipRealty was 14.6% higher than last September, but median prices were up more than 16% year-over-year in the spring and early summer. “With the normal seasonal patterns at work and higher year-ago comparisons, it is likely that annual price gains will narrow further in the months ahead,” explains ZipRealty CEO and President Lanny Baker.
“Meanwhile, the inventory of homes for sale across the markets studied by ZipRealty was roughly 390,000 at the end of September, 12% lower than a year ago but up from 379,000 properties at the end of August 2013. Last year, inventory declined by 5,000 homes between August and September, whereas inventory increased by 10,000 in the same time frame this year. Higher prices and a sense that the market is stronger today are helping bring more supply back to the market,” Mr. Baker shares.
The number of homes newly listed in September 2013 was 11% greater than in September 2012 and several cities are experiencing even bigger increases in new listings. For example, Baltimore saw 22% more new listings added to the market this year than last year in the month of September, while Nashville (19%), Orange County (18%), Washington, D.C. (18%), Seattle (17%) and San Diego (16%) all saw increases in the high teens.
“As inventory and new listings begin to increase, it’s natural that pricing and transaction velocity will start to ease. The median number of days on market for homes in September ticked up to 32 days from 29 days in August, although those levels are still more than 10 days below last year’s levels,” Mr. Baker says.