Lowest number of homes for sale since 2006
In the US there are currently 2.5 million homes listed for sale. This is the lowest number since 2006. Why is this, you ask?
- ‘Underwater’ home owners without enough equity to sell and move on are making their house payments and have decided to stay put. Potential sellers now think that time is on their side.
- The usual pop-up of homes for sale in the Spring and early summer has not materialized.
- Few new-build homes available for sale.
The chart below shows a composite of our national housing inventory illlustrating the continuing sharp drop in homes for sale (inventory) which is fueling bidding wars in many parts of the country - including the Puget Sound area.
HousingTracker (DeptofNumbers) reported that the early June listings, for the 54 metro areas, declined 22.0% from the same period last year. So far in 2012, there has only been a small seasonal increase in inventory.
This decline in active inventory remains a huge story as lower levels of inventory will help with the stabilization of house prices. On a seasonal basis, housing inventory usually bottoms in December and January and then starts to increase again through the summer. So inventory might increase some over the next couple of months, but the forecasts for a “surge” in inventory this summer appear to be incorrect.
Bottom line
Sellers with some equity don’t feel rushed to sell, and Sellers with no or negative equity feel they cannot sell. Result: low inventory.
The pent up demand from Buyers is fueled by the desire to take advantage of historically low interest rates. Result: bidding wars on homes for sale.
Click the link to see how it’s going in Southern California: Shortage of homes for sale creates fierce competition
