Asking Prices Fell in 20 of 25 markets, Prices Down by 1.5% In August

RISMEDIA, Sept. 11, 2008-The Altos 10-City Composite Price Index showed a decline in asking prices of 1.5% in August and 2.3% for the past three months. Prices of properties listed for-sale fell in 20 of 25 major markets according to the Real-Time Housing Market Report, jointly published by Altos Research, a source for real-time real-estate research, and market analysis firm Real IQ^TM.

According to the report, asking prices fell at the fastest rate in Las Vegas – down 4.8% during August – and 8.6% over the most recent three-month period for an annualized rate of nearly 35%. Listing prices rose at the fastest rate in Denver – up 1.9% in August – followed by San Diego where prices were up 1.4%.

“Many markets that had posted multi-month sequential price increases during the summer months displayed fresh weakness in August,” said Stephen Bedikian, partner and research director for Real IQ. “This could portend a general resumption of the downward trend in prices as most markets typically experience seasonal weakness in the fall and winter months.”

Inventory levels declined in 21 of 25 markets. Inventory fell by the largest amounts in Seattle and Dallas with inventory contracting 6.0% and 4.8% respectively. Many markets showed inventory declines of more than two percent for the past month including: San Francisco, San Jose, Washington, D.C., San Diego, Phoenix, Charlotte and Houston.

“While seasonal weakness is typical in the Fall and Winter months, continued widespread inventory reductions like we saw in August could temper near-term price declines,” said Michael Simonsen, CEO and co-founder of Altos Research.

Sixteen of 26 markets had an average days-on-market of 100 or more. Days-on-market declined in just three of 26 markets. By far, the market with the slowest rate of inventory turnover was again Miami at an average of 160 days-on-market. Both San Diego and San Francisco experienced the fastest rate of inventory turnover at an average of 84 days-on-market, followed closely by Austin at 86 days.

Data in the Real-Time Housing Market Report is based on analysis of over one million properties currently listed for-sale in 26 metropolitan markets across the country. The report is the most timely source of housing market data on current market activity.

The report examines housing pricing, inventory levels and market conditions in 26 major U.S. metropolitan statistical areas (MSAs): Atlanta, Austin, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Houston, Indianapolis, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, Salt Lake City, San Diego, San Francisco, San Jose, Seattle, Tampa, and Washington, DC. The first report was published December 7, 2007 and is released every month.

For more information, visit www.altosresearch.com.

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