Sales Drop in September but......take a look, you'll be shocked!

I just got done compiling all the numbers for September 2010 and was perplexed at the average numbers of homes sold and how it is steadily going down (All MLS Residential Sales), but yet the average sales price is holding its own along with the days on market.  Although the number of sales are going down, it seems we are still seeing a steady increase in the average sales price and a steady decrease in the average days on market.  See the graph below. 

I was encouraged to come across the below article that forecasts some GOOD NEWS from .  The reason I share this article is because it reinforces that the numbers are very indicative of the market trends and we can learn a lot from them. 

The RE/MAX Monthly Housing Report shows that in the post tax-credit market, September sales were 6.4 percent lower than August, and 20.6 percent below September 2009.

Closed transactions are still below 2009 levels, according to the 54-city national survey. Miami is the only city reporting higher sales from a year ago with a 3.2-percent increase over September 2009. 

"We anticipated the drop in home sales this summer due to the tax credit - and we usually see sales in September fall below August levels - but we're encouraged by reports of signed contracts in the field," says RE/MAX CEO Margaret Kelly. "An increase in signed contract activity should translate into increased home sales in the coming months."

The inventory of homes on the market in September dropped by 2.8 percent from August and is 0.52 percent lower than the inventory in September 2009. The slight drop has resulted in more stabilization of prices.

Thirty-three of the 54 metro areas surveyed showed a year-to-year increase in sales prices. Overall, prices were down 2.7 percent from August, but still up only 0.9 percent from a year ago. Prices are still higher than 2009 in California cities and are up in the South and Midwest too: Raleigh, N.C. (+11.6%), Pittsburgh (+8.2%), Detroit, (+7.7%), Little Rock, Ark. (+6.4%), Nashville (+5.7%), Philadelphia (+5.2%), Jackson, Miss. (+4.7%) and Charlotte, N.C. (+4.2%).

You can view and download past RE/MAX Monthly Housing Reports by visiting the RE/MAX Public Relations page on Mainstreet. For more information, contact the RE/MAX Public Relations Team.

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Updated 10/18/10