Most markets see price declines, but inventories also drop

A new report from Altos Research indicates that while home prices were down across the board, increased moving activity is knocking down the country's large housing inventory.

In September, 25 of the 26 markets in Altos' latest study saw home prices decline from the previous month. Phoenix led the way with the largest decrease - prices there were down by an average 4.55 percent. Meanwhile, families moving to Tampa in September found home prices that were 2.27 percent lower than they were a month earlier. The only market to experience rising home prices was Washington, D.C. - families packing their moving boxes in that city sold their homes for an average 1.22 percent more last month.

On the other hand, the lower prices may have spurred many families to kick their moving plans into gear. That resulted in falling housing inventories in 12 of the 26 metro areas in the study. Washington, D.C. again led the way as inventory there dropped 14 percent from August and has declined 17 percent over the past three months.

The housing market in Washington, D.C. has been one of the strongest nationwide, led in part by a surge in relocating military workers. The Base Realignment and Closure Process is expected to bring thousands of new workers to the area over the next several months.
 

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