U.S. Housing Inventory Continues to Plummet
Online real estate site Zillow reported a 16.6 percent drop in listings in February from a year earlier, providing further evidence of the shrinking inventory of available homes in the United States.
The largest year-over-year decreases in inventory in February were among more expensive homes, with the availability of top-tier properties falling 20.5 percent, Zillow says. Of the areas studied, only five metro areas showed an increase in inventory: El Paso, Texas; Albuquerque; Little Rock, Ark; Fort Myers, Fla; and Youngstown, Ohio.
As reported by WPC earlier this week
, the supply of homes available for sale in the U.S. has been steadily dwindling in the last, driving up prices and changing the dynamics of the market.
"The supply of for-sale listings continues to dry up, driven in part by potential sellers trapped in negative equity and homeowners that won't sell out of fear they won't be able to find a suitable home to buy later," said Zillow chief economist Dr. Stan Humphries. "But the impact of constrained inventory will create the solution to the problem."
As supply tightens, home values will rise providing more incentive for homeowners to put their homes on the market, Dr. Humphries said.
"While this inventory is coming, it may still be a frustrating spring for buyers vying for what inventory is available," he said. "It's important to be patient and not commit to paying beyond one's comfort level in the heat of negotiations."