With the increase in sales, the months supply of inventory rose to 8.6 from 7.5. The long-term inventory supply ratio has historically been 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 months. The median sale price in February fell 1.1% over the month to $156,100. This was down 5.2% from a year prior. What should be kept in mind is that the decline in price may be at least in part due to a change in the mix of houses sold, and not necessarily because home values have fallen this much. Regardless, housing market demand remains soft, and excess inventories remain prevalent.
|Sales (mil. annual.)||4.88||5.40||5.22||4.64||4.38||4.41|
|M/M % Change||-9.6||3.4||12.5||5.9||-0.7||4.0|
|Med. Price (‘000s)||$156.1||$157.9||$168.8||$170.2||$170.6||$171.0|
|Y/Y % Change||-5.2||-4.2||-1.0||0.1||-0.8||-2.6|