More homes are coming onto the US housing market, perhaps signalling an end to the inventory issues that have badly restricted the market over the last several months. The increase in availability is as reported by two major listing sites in the country.
The biggest, realtor.com, which is the listing site of the National Association of Realtors said that the number of homes for sale increased by 5.82 percent from April to May, and by 25% from the start of the year. However the total number of properties for sale was still 10.11 lower than it was this time last year.
Several markets, including Sacramento, San Francisco and Washington D.C. saw double-digit increases in the number of homes listed for sale according to the website.
Meanwhile competitor Zillow also reported increasing inventory, saying that availability had "turned a corner," with year-over-year inventories increasing in June compared to January in 70 metro markets. Phoenix, San Diego and Minneapolis showed the largest gains.
"It has always been just a matter of time before more supply came on the market to meet this demand, as homebuilders built more new homes and sellers entered the market to capitalize on recent robust appreciation in their own homes," said Zillow chief economist Dr. Stan Humphries.
"Inventory will likely remain below year-ago levels for a while yet, as builders ramp up capacity and sellers wait to squeeze every drop of equity from their home before listing. But a corner has been turned."
Low inventory levels has been cited as the biggest hurdle on the US housing recovery horizon as well as being the main reason for the recent price hikes. Many sellers have sought to be sure that the market was improving before putting their home onto the market, while others are still "underwater" -- owing more on their homes than the property is worth.
Mounting evidence that the market is indeed improved looks to be giving more sellers the confidence to make the leap, as well as rising prices bringing more people to the surface of the metaphoric water.
- Tuesday 18 June 2013