Home prices remain stable despite post-credit sales drop
Updated: Monday, November 22, 2010 - 5:51 PM
Despite continued slow home sales following the expiration of
the first-time homebuyer tax credit earlier this year, home prices
have remained relatively stable, according to the latest monthly
home sales report by
According to the report, nationwide home prices in October were down just 0.7 percent compared to a year ago, while sales were down more than 30 percent. But the report added that the 2009 figures were more than 20 percent above 2008 levels because of the tax credit, so the drop can't be taken out of context.
"It's understandable that sales are lower than the same time last year since the data was artificially inflated," said Margaret Kelly, CEO of RE/MAX. "We're pleased that despite all the market swings, home prices have remained stable and through the winter months we're looking for a return to a normal seasonal pattern, with a pickup in activity next spring."
In addition, buyers used low mortgage rates to work down the nation's housing inventory. During October, the number of available homes dropped by 5.7 percent from September.
That decrease comes at a time when home listings generally decrease. Citing data from the research firm Zelman & Associates, the Wall Street Journal reports that over the last 28 years, home listings in October have generally increased by 0.8 percent.