Severe Inventory Crunches Finally Easing
October 25, 2013
The inventory problem that has plagued many parts of the country over the past year is showing signs of improving, according to a new report by realtor.com®. While the number of homes listed for sale nationwide fell slightly in September, many markets also saw an increase in inventory levels as rising home prices gave sellers more incentives to list.
Inventory levels are at their third highest level of the year. Nine of the top 30 metros saw year-over-year increases in their inventory levels. Some housing markets that experienced the largest drops in homes for sale in the past year are starting to see an increase. The following metros have seen some of the largest year-over-year increases in inventories:
- Los Angeles: +25.2%
- Sacramento, Calif.: +20.9%
- Atlanta: +14.4%
- Orange County, Calif.: +14.3%
- Orlando: +12.5%
- Phoenix: +7.7%
However, inventory levels still remain far below year ago levels in the following areas:
- Detroit: -19.6%
- Boston: -16%
- Denver: -15.4%
Realtor.com®’s figures cover sale listings for more than 800 MLS’ nationwide, but they do not cover new-home construction or “for sale by owner” listings.
On Monday, the National Association of REALTORS® reported year-over-year gains in unsold home inventories for the first time in more than two-and-a-half years. NAR reported the housing inventory nationwide was 2.21 million in September, up from 1.8 percent compared to year ago levels.
Source: “Report: Housing Inventory Fell in September,” The Wall Street Journal (Oct. 24, 2013)
Updated: May 29, 2020