November 2010 Highlights
The Altos 10-City Composite is now at $458,518, off 1.60% from last month.
Home prices fell in 25 of the 26 markets covered in the report.
Cities that felt decreases most sharply were San Diego (-3.28%), Salt Lake City (-3.27%), and Phoenix (-3.11%).
Three of the 26 markets covered in this report showed increases in inventory, and nationally, inventory was down 4.64%.
In what is becoming a familiar pattern, the Altos 10-City Composite fell in October 2010. The index was off 1.52% in September and another 1.60% during October to $458,518. These decreases are in line with our Q4 expectations, though weekly declines in prices are slowing. December’s report should indicate less dramatic price declines, with a few bubbly exceptions.
San Diego showed the most significant decreases, with prices falling there by 3.28%, signaling that even in markets that have been less affected by the economic downturn are feeling the pinch of the strained economy. Other markets showing significant decreases were Salt Lake City, with a drop of 3.28% and Phoenix – the market that feels the most risky-- with a drop of 3.11%.
As was the case in September, inventory across the country is decreasing, in some cases, significantly. Washington, DC had the biggest decrease at more than 16%, and inventory rose slightly in Las Vegas, Phoenix, and San Diego. Typically, decreases in inventory are evidence of a leveling off; that markets are settling. However, the spectre of shadow inventory remains, bringing with it questions about how foreclosures and short sales are being counted. The Altos 10-City index fell 4.64% in September.