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Tuesday, September 18, 2012

Report: Housing Inventory declines 18.7% year-over-year in August

by Calculated Risk on 9/18/2012 08:01:00 AM

From August 2012 Real Estate Data

The total US for-sale inventory of single family homes, condos, townhomes and co-ops (SFH/CTHCOPS) remained at historic lows, with 1.84 million units for sale in August, down -18.68% compared to a year ago and 40% below its peak of 3.10 million units in September 2007, when began monitoring these markets.

The median age of inventory of for sale listings was 91 days in August, up by 3.41% from July, but -11.65% below the median age one year ago (August 2011). While the median age of the inventory is highly seasonal, the year-over-year decline is consistent with other data showing a significant improvement in market conditions.

For sale inventories of SFH/CTHCOPS in August declined on an annual basis in all but two of the 146 MSAs monitored by, with for-sale inventory dropping by -20% or more in 62 of the 146 markets covered. ... Eight out of [top] 10 of these markets are in California, with Seattle, WA, and Atlanta, GA, also registering declines of -41% and -37%, respectively.

Only two areas experienced a year-over-year increase in their for-sale inventories— Shreveport, LA (+17.87%), and Philadelphia PA (+3.51%). Increasing inventories in these markets most likely reflect the impact of continued weaknesses in their local economies.
The NAR is scheduled to report August existing home sales and inventory on Wednesday. The key number in the NAR report will be inventory, and inventory will be down sharply again year-over-year in August.