Housing Supply Outlook – March 2009

The March Housing Supply Outlook is out. What to watch for:
Home sales below $150,000 are extremely hot, more than doubling over the last 12 months due to the effect of foreclosures and short sales.
There are now 7.8 months of supply, which is 15.2 percent lower than the rate of 9.2 months seen at this time last year. The biggest drop-off in months supply has been in the single-family property type, as sales have risen and inventory has dropped. Months supply of condominiums has actually risen 11.9 percent to 12.2 months.
Paradoxically, the average price of a condo has grown 5.7 percent in the last 12 months. However, the price per square foot has declined by 5.2 percent to $172 per square foot. This is an indication that larger condos have been selling but have been selling at a relative discount when we control for square footage.
MAAR_March 2009