The increase in prices is difficult to explain given the increasing number of homes currently active in the market which set a new MVHR record:
September saw the Active Monthly Inventory (SAI) climb to an adjusted 4,214 homes on the market, the highest mark since September a year ago. The unadjusted SAI, however, did fall 3.4% when compared to August – but not enough to halt the fourth monthly increase in a row for the Absorption Rate Index (ARI) which set a new high of 13.7 months. This is the highest monthly rate ever recorded by the MVHR. However the unadjusted data for September offered a glimmer of hope as the raw absorption rate of 16.0 months retreated 2.6% from a high of 16.5 mo. in August, the highest raw rate ever recorded by the MVHR.
Actual homes sold in September (315) were 10.1% higher than in August (286). However, the adjusted 12 month Transactions Per Month Index (TPM) (a twelve by twelve month moving average of homes sold), continues its steady downward slide. Last year in September the Valley saw 343 homes sold.
Pending Home Sales (PHS) can now be seen on the MVHR Data Summary along with the Transactions Per Month Index. Homes under contract but not yet sold are known as ‘pending homes’, and are considered a leading indicator of future sales. In September, pending homes stood at 458. This is down slightly from August (520) but respectable enough to lend some optimism for October’s sales and a further reduction of the number of homes on the market.
Jack Pearce Broker, RE/MAX Valley Real Estate said, “The good news is – the bad news isn’t as bad as it could have been. We see signs of home price stabilization even though a report from RealtyTrac shows that Ohio leads the nation in foreclosure discount at 43%. We also saw a retreat at least in the unadjusted rate of inventory absorption.”
“The housing market in the Mahoning Valley is clearly in a holding pattern. Interest rates that break through new lows weekly and prices that are 30% less than they were just two ago should be attracting eager buyers to the housing market; but the snail pace of the economic recovery and worries about job security and economic insecurity keep them clinging to the fence. The tight grip on money from lenders coupled with unrealistically low appraisals – perhaps an understandable over-reaction to the mortgage meltdown – is a one-two punch that a lot of homebuyers find difficult to duck.”
Detailed information including downloadable charts and graphs can be found at - http://www.ourvalleyhomes.com/
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RE/MAX Valley Real Estate, located in Boardman, Ohio, is an independent, locally owned, and locally operated franchise of RE/MAX Int.. It was founded in 2000 by top producers for top producers. Their agents rank number one in the Mahoning Valley for average associate production and average volume of sales. RE/MAX Valley services the real estate needs of the Mahoning Valley, Trumbull, Mahoning and Columbiana Counties. "No one sells more real estate than RE/MAX."
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