The single-family detached market is showing signs of moving back in the buyer’s favor, with supply increasing and demand decreasing. The inventory of active single-family homes is now 19,722, up 8.4 percent from a year ago, and the number of pending sales over the last twelve months has declined by 0.7 percent. As a result, this segment is the only property type showing an increase in Months Supply from a year ago.

Since the expiration of the tax credit, home sales have particularly slowed in the lower price ranges—a segment that up until recently had been showing very strong demand. Home sales under $120,000 (the lowest price range we track) are down 3.7 percent over the last 12 months. Inventory is up in that price range by 25.5 percent.

Home builders have been making larger price concessions in recent months to spur sales. The Price Per Square Foot (PPSF) of new construction homes has declined by 11.5 percent in the past 12 months, while previously owned homes have seen their PPSF hold relatively steady.

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