The national median existing home price in September was $165,400 which is a 3.5% decline from the median home price in September of 2010.
Inventories, currently at 3.48 million homes for sale is a decline of 71,000 which can be attributed to a natural seasonal decline that will extend through the winter months and into February. Because of this additional declines in inventory can be expected through February. Yun stated that it is possible that inventories could hit the 3 million mark because of seasonal declines. The current inventory stands at an 8.5 month supply.
Single family homes inventory was down 3.6% from a year ago while condo sales were up 1.8%. Prices on single family homes were down 3.9% from a year ago and condo prices were down 1.0%. Single family homes inventory are at an 8.2 month supply and condo inventory are at an 11 month supply.
Distressed sales including foreclosures and short sales accounted for 30% of all sales (down 1% from August) and down from earlier in the year when it was at 40%. Foreclosures made up 18% and short sales 12%. Foreclosures are outpacing short sales because they are typically a faster closing transaction. Some multiple bidding has been seen on foreclosure properties and the market is showing that it has been able to absorb the shadow inventory hitting the market.
All cash purchases stand at 30% (average for this year, but extremely higher that what has been seen historically..usually around 9%). This is due to tighter lending conditions where investors are finding it difficult to get financing so they are turning to cash.
Lawrence Yun stated that the market is in a holding pattern, and if employment conditions stay the same or improve, a housing market break out will be in a positive direction.