U.S. Housing Glut Gets Worse
As the air escapes from the U.S. housing bubble, it’s been hoped that after rising rapidly since 2005 the inventory of unsold homes in the United States would decline after leveling off in recent months. However, the Wall Street Journal reported this morning that the number of unsold properties for sale in major metropolitan areas grew modestly last month. James R. Hagerty, in a post for the Journal’s “Developments” Blog, wrote:
Total listings of homes in 29 metro areas at the end of last month were up 1.2% from a month earlier, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif…
After rising rapidly since 2005, the inventory of unsold homes has leveled off at a high level in recent months. Economists and other market watchers say that is partly because some people who don’t have an urgent need to sell soon have pulled their homes off the market and are awaiting a recovery in the market. Ordinary homeowners must compete with builders seeking to unload inventory and lenders that have acquired homes through foreclosure.
Yet, even though properties are being yanked off the market, the inventory of unsold homes is still up 17% from February 2007 in 18 metro areas where ZipRealty is able to do a comparison. Hagerty noted that areas with the largest percentage increases in unsold inventory from January to February include Seattle (up 5.4%), San Francisco (up 4.8%), Minneapolis (up 4.4%), and Boston (up 3.7%).
To see the inventory of unsold homes in your area, check out the following interactive chart:
Interactive Chart
Source: ZipRealty
Source:
“Glut of Homes on the Market Grows, New Data Shows”
James R. Hagerty
Wall Street Journal “Developments” Blog, March 11, 2008
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