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Friday, May 9, 2008

Analysts Say Inventories May Shrink Soon

From Realtor Magazine Online, Daily Real Estate News May 9, 2008

The supple inventory of homes available for sale in major metropolitan areas rose in April, according to figures compiled by ZipRealty Inc. But analysts believe the supply of houses may plateau.

The inventory was up about 6 percent from April 2007 in the 18 metro areas for which Zip, a California-based real-estate brokerage, has comparable year-earlier data.

Compared with March of this year, inventories expanded 3.5 percent in the 29 markets the company tracks. However, the number of homes on the market normally increases during this month-to-month timeframe.

Michael Larson, a real estate analyst with Weiss Research, says, “Inventories in some cities may be topping out” because there are fewer new homes being built and builders and banks have been very aggressive in selling off foreclosures and previously built homes.

Source: The Wall Street Journal, James R. Hagerty, and CNNMoney.com, Les Christie (05/08/2008)

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