Prices for homes listed for sale fell in 16 out of 20 markets that compose a new index. The Real-Time Housing Market Report says days on the market also increased in virtually all markets.

But are all markets languishing?

For-sale inventories actually declined over the past three months in most markets covered by the index, and some dramatically. That's good, but the days on market suggest it isn't happening very quickly.

While most housing analysts closely watch prices and inventory levels, days on market helps put it all in perspective. They show which direction a market is headed -- up or down. A buyer's market typically has over six months of inventory on hand, while a seller's market has under six months worth of homes for sale.

Homes in most markets took longer to sell. In Washington, DC, days on market increased 47 percent in the fourth quarter, 2007. It took 79 days to sell a home in October. In December, it took 116 days. That's a big change.

The days on market is a metric that's unique to the organized real estate industry. The number starts when a real estate agent puts the listing into the local MLS. It ends when the home is sold and closed.

Of course there are ways to manipulate the numbers. Some agents promote "pocket listings," which means they privately market the home to other agents and special buyers hoping to sell the home before it goes into the MLS. Some have been known to withdraw a listing that hasn't sold, reprice it, and enter it as a new listing, but most MLSs have rules against both practices because it doesn't give a true picture of the market to consumers.

Not all the news was grim. Some markets are signaling a turnaround. Take Dallas, for instance. Dallas was the only city to post a gain in list prices over the fourth quarter. Inventories are down 10 percent, over 8 percent took place in December.

Here's where days on market clarifies what's happening. Dallas days on market declined 11.5% over the quarter, with a whopping 16.7% decline in December.

That suggests demand is suddenly increasing in Dallas.

To see what market conditions are like in your area, go to RealtyTimes.com and click on Market Conditions.

Published: January 11, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.