SAN JOSE, Calif. – Aug. 15, 2013 – Realtor.com released its National Housing Trend Report for July. While the inventory of for-sale homes declined 5.24 percent year-to-year it marks the second month in a row where the inventory decline was in the single digits, suggesting the national inventory shortage may be easing.
According to the report, national median list prices increased 5.27 percent year-over-year, while the median age of the housing inventory is down 16.67 percent.
While California markets dominated the list of markets with housing inventory declines earlier this year, the top cities with a drop in inventory now include Detroit, Boston, Denver, Honolulu and Naples, Fla., which had a 23.5 percent decline in inventory. The large decrease in for-sale inventory in these markets suggests the beginning of a housing market recovery process similar to what was observed in Florida in 2011.
“The recovery is entering a new phase where inventory shortfalls are no longer the driving force behind changes in housing prices in many markets,” says Steve Berkowitz, CEO of Move, Inc. “Larger inventories, especially in the hotter markets that experienced rapid price increases in the spring, are expanding buyers’ choices and helping to moderate price increases This month’s report also underscores the uneven nature of the housing recovery and its dependence on the strength of the local economy.”
• Dramatic national year-over-year inventory declines have evaporated. Inventories in July are only 5.24 percent below the level of a year ago compared to being down 16.47 percent year-over-year in January.
• In July 2013, the number of markets with decreases in year-over-year inventory declined to 118 markets from June’s 125. If that trend continues, some markets may see year-to-year inventory levels unchanged sometime this fall.
•All but five national markets continue to see year-over-year declines in age of inventory. On a national level, housing inventory is approximately 17 percent below last year, but the national age of inventory increased 6.25 percent month-over-month.
• Price declines decrease in local markets. Median listing prices are now negative year-over-year in only 31 markets, down from 36 in June.
• The top five MSAs with year-over-year inventory increases are Riverside-San Bernardino, Calif., 26.04 percent; Dayton-Springfield, Ohio, 23.49 percent; Atlanta, 17.85 percent; Sacramento, Calif., 16.66 percent; and Santa Fe, N.M., 14.02 percent
© 2013 Florida Realtors®