Housing Inventory Making a Comeback Posted: 16 Sep 2013 04:00 AM PDT The shortage of homes for sale earlier in the year created an imbalance of supply to demand which resulted in double digit year-over-year price increases nationally. According to a recent Wall Street Journal article, the inventory of homes for sale is now beginning to reach more normal levels. The article reported: “Housing inventories increased in August and stood just 2.5% below their levels of a year ago, offering the latest sign that more sellers are testing the market after swift home-price gains over the past year. Nationally, there were 1.98 million homes listed for sale in August, according to a report released Thursday by Realtor.com. That was up by more than 24% from the low point in February and up 1% from July. Inventories have increased for six straight months.” What about Home Prices?This doesn’t mean prices will collapse. The inventory levels are still depressed, just improving. As the article mentions:“While the overall level of homes for sale remains relatively depressed, the report suggests that inventory may have hit a bottom earlier this year after an extended two-year decline.” However, as we mentioned last week, properly pricing your home in this market can be tricky. You should depend on the advice of your real estate agent. |
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