Tuesday, September 27, 2005

Inventory is Swelling

Inventory is swelling across the bubble markets. The number of days on the market is also climbing.

  • "Countywide, active home listings in the Regional MLS, including single-family homes, condominiums and townhomes, have increased a startling 83 percent from August 2004 to September 2005, said veteran realtor Randy Bianchi. Active listings for three-bedroom, two-bath, single-family homes in Palm Beach County have risen 64 percent in the same period, to 2,364 from 1,441, he said" ( Palm Beach Post, 9/27/05)

  • "Supply levels rose steadily for a sixth consecutive month in August as active listings for detached single-family homes increased 26.6 percent over the past 12 months, from 29,758 detached homes for sale in August 2004 to 37,666 listings in August 2005." ( Massachusetts association of Realtors)

  • "Total housing inventory levels rose 3.5 percent at the end of August to 2.86 million existing homes available for sale, which represents a 4.7-month supply at the current sales pace." (NAR). The 3.5% rise in inventory is just between the end of July to the end of August. That is huge.

The inventory is rapidly climbing. The 'tight inventory' that David Lereah spoke of at the beginning of the month is rapidly ending. The balance is shifting from seller to buyer.

1 comment:

  1. What distinguishes between a buyer's market and a seller's market is turnover, not inventory. Generally, if the average turnover is more than eight months, it is a buyer's market. If it is between six and eight months, it is a stable market. If it is less than six months, it is a seller's market.

    Of course, this determination does not take into consideration such things as overpricing. A seller who insists that his house is worth $750,000, when it is really only worth $500,000, can list his house at an inflated price, but he's not going to sell it.