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Friday, October 10, 2008

Housing Inventory Declines Slightly

From Realtor Magazine Online, Daily Real Estate News October 10, 2008

In line with seasonal trends, the U.S. home supply dipped in September from August levels in 28 metro areas monitored, but the drop was about half the norm for this time of year.

ZipRealty Inc. reports that the number of residences on the sale market fell 1.6 percent--3 percent is more typical--and that inventories remain swollen.

However, the California brokerage notes that exact inventory levels are difficult to pinpoint because foreclosures account for a large share of the current supply but often are not sold through multiple-listing services, which is how ZipRealty tracks the data.

The National Association of Realtors, meanwhile, counts 4.26 million existing homes up for sale at the end of August--equivalent to a supply of roughly 10.4 months at the current sales pace.

Supply and demand in the housing market is considered balanced when the inventory settles at about six months, according to the trade group.

Source: Wall Street Journal (10/09/08) P. D2; Hagerty, James R.

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