Seller's Market: Falling Inventories Stymie Home Buyers in These Cities

Seller's Market: Falling Inventories Stymie Home Buyers in These CitiesIn many U.S. housing markets, tumbling inventories are creating a seller’s market and a buyer’s misfortune, even at current historically low interest rates.
Real estate site Movoto found that the number of homes on the market has plunged 51.5 percent from 2011 and down 35.4 percent from 2010.
Most recently, Movoto found that inventory overall declined by 21 percent year-over-year in March 2013 in the 38 cities it tracks, with 32 cities registering decreases. At the end of March 2012 there were 124,808 homes on the market. One year later, this number has dropped to 98,336 homes.
Movoto: “2013 isn’t shaping up to be a particularly strong year for home buyers so far. In a normal market, inventory levels increase into the spring buying season. While this is bad news for home buyers, the lack of inventory benefits home sellers.
As a result of dwindling inventories, the list price per square foot increased by 11.5 percent year-over-year in the 38 cities.
Thirty of the 38 cities saw an increase in list price per square foot. In March, our index showed homes cost $171 per square foot, compared to the estimated value in 2012 of $151.
“Normally, a home’s value increases at about the rate of inflation,” Movoto reports. “In other words, 5 percent is considered a strong increase. With that in mind, an 11.5 percent increase is exceptional.”
Seller's Market: Falling Inventories Stymie Home Buyers in These Cities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Source: Movoto.com

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