Total housing inventory at the end of March declined 1.3 percent to 2.37 million existing homes available for sale, which represents a 6.3-month supply at the current sales pace, the same as in February.
THE KEY STATEMENT: Listed inventory is 21.8 percent below a year ago and well below the record of 4.04 million in July 2007. Listing a home for sale adds to the available inventory of existing homes for sale.
In other words, less homes are being listed today and with the months supply of existing homes for sale already low, we are seeing a significant change in the market. The lack of inventory will stabilize home prices.
What I can't figure out is why the lack of listings?
But, I will guess!
1. The inventory of foreclosures is high but not being released by banks
2. Homeowners are not making a change in their housing needs - fear of the future
3. Job creation is down and less people are relocating for new jobs
4. Homeowners are waiting for prices to increase
4. Pent-up demand is starting to take effect and "good" homes are selling and not being replaced
5. New home construction has increased but only marginally.
What kind of economy is it when no one wants to sell a home and no one wants to buy a home?????
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