Low Inventory Continues Pressure on Home Prices

Two indicators of nationwide home sales and prices trends were reported in the last couple of days

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The National Association of Realtors® Pending Home Sales Index declined in February compared with January, but is significantly (8.4%) higher than February 2012. Real estate sales contract activity has been above year-ago levels for the past 22 months; the data reflect contracts but not closings. Low inventory is blamed for the reduction in activity and the Realtor® association outlook sees no change in that for the next several months.

Meanwhile, yesterday Case-Shiller released data for January which showed that U.S. home prices rose 7.3% from a year ago in its 10-city index and 8.1% for the 20-city index. All 20 cities showed year-over-year gains with Phoenix leading the way with a 23.2% gain. Case-Shiller’s methodology prevents inclusion of smaller markets like Flagstaff in its analysis. Case-Shiller data reported for January is a 3-month moving average of data from November, December, and January.

Last week, the National Association of Realtor® reported data on more recent sales showing the same price trends: Existing Home Sales Report.

To buy or sell any Flagstaff home, please contact me: Ann Heitland at RE/MAX Peak Properties.

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