Oct 12, 2012
Home prices barely drop from August to September (this is unusual)
12 Oct 2012
Posted by Andrew Kantor
Not news: Redfin says that both home sales and home prices were up in September over last year. That’s not unexpected — the four percent sales jump and 5.4% price jump are signs of the ongoing recovery.
What is unusual is that home prices dropped less than one percent from August to September. As you probably know, September typically starts the slowdown season. Kids are back at school, the cooler, wetter weather is moving in, and prices drop with demand.
But that didn’t quite happen this year. Demand slacked off — sales were down 17% from August (not unexpected) — but prices only dropped 0.8%.
September is usually the month that real estate goes on sale, like Christmas toys in January. Whatever didn’t sell in the summer gets marked down for a September closing. This September, we saw only a modest decline in prices, with inventory still dropping and demand fairly steady.
The usual disclaimers apply, of course: These are nationwide numbers, your mileage may vary, and so on.