Turning Point for Housing Market? Key Drivers Shift from Supply to Demand

SAN JOSE, Calif., Sept. 12, 2013 /PRNewswire/ -- Realtor.com®, the leader in online real estate operated by Move, Inc. (NASDAQ: MOVE), today released the realtor.com® National Housing Trend Report for August 2013. As the year's peak home buying season comes to a close, key market indicators point to a shift in the dynamics of the housing market, suggesting that future home value appreciations may likely be driven by market demand, rather than inventory shortages.

An analysis of the summer home buying season ending in August shows year-over-year changes now within the single-digits for three key indicators – inventory count, median age and median list price, signaling a leveling of the market not seen for some time.  The national market was virtually flat month-over-month compared to July for both inventory and median list price, and registered a slight increase in median age of inventory.

"Where we have seen significant volatility in many markets, including double-digit declines in inventory as well as increases in median price for both yearly and monthly views, we are now looking at a housing market that is less heated and moving closer to normalcy," said Steve Berkowitz, CEO of Move.  

National Highlights:

• Widespread Inventory Recovery - The inventory recovery is broad and growing.  The net number of listings increased even though the summer season is ending. Close to one-third of the 146 markets are within 5 percent of last year's inventory levels, and more than two-thirds (99) of markets registered a net increase in inventory over last month.
• Prices Stabilize - Despite the increase in inventories, the national median list price did not change compared to July. Absent a significant weakening in economic conditions or significantly higher rates, prices should continue to slowly rise alongside typical cost of living increases.
• Price Appreciation Becoming More Widespread - In August, 123 of the 146 Metropolitan Statistical Areas (MSAs) covered by realtor.com® registered a year-over-year increase in their median list price, with 78 markets registering an increase of 5 percent or more.  Of the 18 markets reporting a list price decline, only 11 markets had a year-over-year list price decline of one percent or more, and only three markets had a list price decline of 5 percent or more.  By contrast, the number of markets reporting year over year median prices lower than they were last year was 31 in July.

Local Market Highlights:

• Inventory – The following  MSAs saw a significant  decline in inventory:
  • Melbourne, Fla.: -30 percent
  • Sacramento, Calif.: -26 percent
  • Stockton, Calif.: -31 percent
• Median Age – The median age of inventory increased across the board in 130 of 146 MSAs. The three biggest gainers were:
  • Oakland, Calif: +25 percent
  • Denver: +26 percent
  • Seattle: +25 percent
• Median List Price – The nationwide median list price had no significant gains or losses, but the two markets of greatest change were:
  • Highest gain was 6.53 percent for Corpus Christi, Texas
  • Lowest decline was -8 percent for Jersey City, N.Y.
• The majority of markets covered by realtor.com® appear to be ending the 2013 home buying season on a positive note, with more balanced inventories, shorter time on market, and higher listing prices compared to one year ago. However, some markets traditionally focused in the industrial sector continue to struggle due to weak local economies – examples include markets in the Carolinas, Philadelphia and New Jersey.
• California markets continue to dominate the list of areas experiencing the largest year-over-year median list price increases, despite the surge in new property listings that has occurred in most of these areas.  Detroit, Phoenix, Reno, Nev. and Las Vegas also continue to be among the nation's top performers in terms of their year-over-year list price increases. 
• Many smaller industrialized markets in the Midwest and the Northeast continue to struggle, and several major Florida markets are showing signs of re-emerging weakness.  This underscores the uneven nature of the housing recovery and its dependence on the strength of the local economy.

Realtor.com® regularly tracks real estate data and develops monthly reports featuring the number of listings, median age of inventory and median list price across the U.S. and in specific markets, as well as provides year-over-year and month-over-month changes. These reports are the only ones pulled directly from the realtor.com® database, where 90 percent of listings are updated every 15 minutes from more than 800 multiple listing services. For more information on Move, please visit www.move.com or one of its many online real estate properties including realtor.com® at www.realtor.com.

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ABOUT realtor.com^®
Operated by Move, Inc., (NASDAQ: MOVE), realtor.com^® helps connect people with the content, tools and expertise they need to find their perfect home. As the official website of the National Association of REALTORS^®, realtor.com^® empowers consumers to make the smartest decisions when it comes to finding a home by leveraging direct connections with more than 800 MLSs to deliver the most accurate and up-to-date listing information in neighborhoods across the country, and by making timely and meaningful connections between consumers and REALTORS^®. Whether through desktop, mobile, or tablet versions, realtor.com^® is where home happens.

ABOUT MOVE, INC.
Move, Inc. (NASDAQ:MOVE), the leader in online real estate, operates:  realtor.com®, the official website of the National Association of REALTORS®; Move.com, a leading destination for new homes and rental listings, moving, home and garden, and home finance; ListHub™, the leading syndicator of real estate listings; Moving.com™; SeniorHousingNet; SocialBios; Doorsteps, TigerLead®; and TOP PRODUCER® Systems.  Move, Inc. is based in San Jose, California.

Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of Move's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Move's future results. The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

SOURCE realtor.com