With the increase in sales, the months supply of inventory fell from 8.2 to 7.6, the lowest level in more than a year, yet still quite high historically. The normal long-term inventory supply is around 5 months. Ratios above about 6 to 7 months are historically correlated with short term price declines. Indeed, this has been the trend over the past six months. The median price in January fell 5.9% over the month to $158,800, far exceeding the 0.8% decline in December. The median price is down 3.7% from a year ago. The steep price decline indicates the increased sales were likely driven by distressed properties.
|Sales (mil. annual.)||5.36||5.22||4.64||4.38||4.41||4.24|
|M/M % Change||2.7||12.5||5.9||-0.7||4||9.8|
|Med. Price (‘000s)||$158.8||$168.8||$170.2||$170.6||$171.5||$177.4|
|Y/Y % Change||-3.7||-1.0||0.1||-0.8||-2.5||0.1|
Source: National Association of Realtors