In September 2008, a combination of seasonal trends, distressed-sale discounts and general market weakness pushed home prices lower in most metropolitan areas, according to Radar Logic Inc.'s RPX Monthly Housing Market Report.
Twenty-three of the 25 metropolitan statistical areas (MSAs) tracked by the company's Residential Property Index saw prices decline between August and September, and prices in all 25 MSAs declined compared to September 2007.
The near unanimity with which prices declined in September contrasts with price dynamics during the housing boom, when seasonal price patterns between August and September were at odds with the nationwide price trend, Radar Logic says. Between 2000 and 2005, MSAs with strong seasonal patterns, such as Boston and Minneapolis, saw prices in September fall toward their winter lows, while MSAs in warmer climates, such as Los Angeles and Las Vegas, saw prices continue their upward trend through the fall.
That changed in 2006, when the boom leveled off, and for the last two years, prices have declined month-over-month in nearly every MSA during September.
"A closer look at historical price trends reveals that a normal seasonal lull is aggravating the downward price pressure created by foreclosures and a deflating price bubble, particularly in northern MSAs, says Michael Feder, CEO of Radar Logic. "In the spring, we expect to see the seasonal trend reverse and prices in healthier markets improve on a month-over-month basis."
The complete report is available at www.radarlogic.com.
SOURCE: Radar Logic