The 25-metropolitan-area RPX composite price declined 0.8% in August, the largest drop for this time of year since the crash of 2008. Prices declined 4.7% relative to August 2010.
And...."We continue to see the negative effects of the supply/demand imbalance in housing," said Michael Feder, president and CEO of Radar Logic. "Until we truly begin to deal with it, the numbers will reflect the fundamental weakness in housing markets."
Home sales peaked early in 2010 and declined rapidly thereafter as homebuyers moved up their purchases to qualify for the tax credit.
The big increase in August sales in 2011 compared with 2011 was due to the affect of the tax credit in 2010. In 2010 buyers moved up their purchases because the tax credit expired on June 30, 2010. That made buyers move up their purchases.As a result, there were significantly fewer sales in August 2010 than is typical. This year home sales followed the seasonal pattern more closely, with sales remaining relatively high through August, thus the disparate rates in the annual comparison.