Housing supply drops for 13th straight month
Sale listings of homes in U.S. metro areas continued to shrink for the thirteenth month in a row, according to California-based ZipRealty, feeding hopes that buyers are returning and the worst of the housing crisis might be over.
ZipRealty estimated that the inventory of homes, townhouses and condos in nearly 30 major cities dropped 2.5 percent in July. That’s 28 percent lower than it was a year earlier. A decrease in the supply could suggest that prospective homeowners are finally entering the market, convinced that asking prices are near their bottom. But as The Wall Street Journal reported Tuesday, many real-estate-owned homes may be hidden in the recent inventory numbers, because banks are hesitant to glut the market and depress home values with excess listings.
The inventory of available homes might also see increases later this year, as loan modifications and foreclosure moratoriums run their course and fail to help many homeowners.
Source: DSNews.com, Adam Weinstein