The level of new properties entering the market declined during October to its lowest level in decades.
Inventory for new properties dropped to the lowest point in the last half-century, a property data report from Pro Teck Valuation Services noted. This brought the overall housing inventory level to 4.5 months, on a national level.
Citing the firm's October Home Value Forecast Update, HousingWire reported that new home prices continued to perform, especially when compared to existing home prices. While there was a recent change in this, there was typically close figures for new and old property prices from the 1960s on.
"The U.S. housing market has entered a sustainable period of improving conditions led by very low mortgage rates, stable to rising home prices, declining unemployment, declining housing inventories and a strong rental market," said Tom O'Grady, CEO of Pro Teck Valuation Services, according to the news source
Overall, the median price for new, single-family properties dropped by less than 1 percent in the past six years, to a level of $256,900, the report noted. However, this was not the case for existing single-family homes. The peak price, which occurred in 2006, was 20 percent higher than the current level, as the latest price was $183,900.
There were several areas of the country that did well, the report added. There are 20 cities analyzed in every report, split between a top 10 and bottom 10.
"The top ranked metros are located in Texas and one is in Oklahoma, which confirms the strength of the real estate market in this part of the country," said Michael Sklarz, principal of collateral analytics and contributing author to Home Value Forecast, according to HousingWire.
S&P identifies home price increases
The home price levels around the country continued to rise during the past several months, as multiple reports showed. Specifically, the latest Home Price Indices report completed jointly by S&P and Case-Shiller, explained that prices increased in both its 10- and 20-City Composites.
Specifically, property data from the report showed that for the 10-City Composite increased 0.9 percent in August compared to the previous month. Additionally, the 20-City Composite registered the same improvement month-over-month.