October witnessed solid price increases, steady inventory and strong demand continuing well into the fall, according to realtor.com®’s data
Median list prices were relatively unaffected by the usual seasonal patterns with a strong 7.57 percent increase year over year. National inventory is stabilizing after the dramatic declines seen earlier this year, although the country still is experiencing significant supply shortages. Most notably, median age of inventory – a leading indicator of demand – is down 11.32 percent year over year, demonstrating resilience to seasonal changes and stabilized inventory.
“Instead of the usual seasonal slowdown, October data show the 2013 fall market moving at a fast pace,” says Errol Samuelson, president of realtor.com®. “Inventory has returned to last year’s levels, but prices continue to strengthen and homes are moving significantly faster compared to this time last year.”
“This demonstrates that the overall strength of the national housing market is determined partly by inventory availability,” says National Association of REALTORS® Chief Economist Lawrence Yun. “We expect rising home price conditions to continue through the balance of the year.”
National Perspective:
• Inventories are now just 1.51 percent lower than they were one year ago-a dramatic turnaround compared to the substantial year-on-year declines noted at beginning of this year, which signals steadying inventory conditions.
• Median age of inventory is down 11.32 percent year over year and rose slightly on a monthly basis from 93 to 94 days. This suggests that properties continue to turn over quickly in contrast to the usual seasonal patterns, and despite increasing prices and stabilizing inventory.
• Median list prices are 7.57 percent higher than where they were one year ago. On a month-over-month basis, prices fell slightly in October but remained resilient against the usual seasonal patterns and stabilizing inventory.
