Hat tip to SM for sending this over, from our friend Nick at the WSJ:
Is this what the beginning of a double-dip feels like?
The number of homes listed for sale grew in many U.S. cities in July, a month when inventory typically declines.
The supply of homes available for sale in 26 major metropolitan areas at the end of July increased 2.6% from one month earlier, the seventh straight month-over-month jump, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif. The figures include all single-family homes, condominiums and townhouses listed on local multiple-listing services in markets where the firm operates. (See the data.)
Nationally, inventories typically decline in July as the big spring sales months give way to a more sluggish summer. Zelman & Associates, a research firm, says July listings have typically fallen by 0.8% from June over the past 28 years.
Compared to one year ago, the July inventory in the 26 markets covered by ZipRealty was up 7%.
Western markets continued to see the largest monthly increases in inventory, led by a 9.6% gain for Las Vegas, 7.9% for Orange County, Calif., and increases of 6.3% in San Diego and the San Francisco Bay Area.
Markets with an increase in inventory also saw declines in list prices. Median list prices fell by 3.6% in Phoenix and San Francisco, and by 3.3% in Las Vegas, from the previous month.
“We just don’t have as many people out actively transacting,” says Pat Lashinsky, chief executive of ZipRealty. “They’re waiting, they’re looking, they’re seeing homes, but they’re not buying.”
California cities also had the largest annual increases in housing inventory: San Diego (53%), Orange County (32%), and San Francisco (28%).
Compared with the previous month, inventory fell in just two markets—Boston and Charlotte, N.C.
Many housing markets face the prospect of additional inventory as banks repossess homes through foreclosure and list them for sale. Meanwhile, housing markets that have seen steady home price recoveries may have more “pent up” sellers who have decided to test the market after sitting on the sidelines for years.
I think there will be a very high rate of cancelled listings in November and early December. JtR
I think there will be a very high rate of cancelled listings in November and early December.
Agreed. A lot of “I’d like to move if I can get what I want” people. This feels very much like 2008 when I saw a (literally) 50% cancellation rate on the subsection of a zip code I’m watching.
JTR, I don`t think I have ever heard you mention property managers. Are there any in the area you trust and reccomend?
Its not a double dip. We just had a cheese sandwich in between a giant scoop. Can we still feed the beast some more?
A few couples I know who have been looking for detached homes, feel that there are a lot of “dregs” out there, and very little good inventory. The good inventory goes fast. What they seem to see are “grandma’s houses” – relatives selling an older home that needs a LOT of updating and repairs. What seems to be missing are the “organic” sales. Guess everyone one is waiting for “things to improve” before listing their homes. . .this standoff seems to have been going on for at least four years, and likely will go on for another four or five.
We can’t count on inflation this time to increase prices, as it looks like deflation is still taking place – average wages are actually trending down a bit, and wage cuts (especially in public service) are all the rage.
We’re trying to find “grandma’s house” but are having a hard time finding something that makes sense. They often need $100K+ worth of work, and they are not priced accordingly.
Agree that the inventory isn’t very compelling, mostly because it’s not priced right.
Definitely agree with you on the declining wages, too. I see very little reason for prices to rise from here. The credit has pulled in anyone who wanted to overpay with taxpayers’ money; rates have been extremely low, so the “montly payment” types are in. What’s left? Those of us who are only willing to buy a the right price, which is lower than where they are today.
Off Topic – Re JTRs ice cream social at the LC Park n Ride, its is also a Goodwill drop station. Thus, you can justify the time/trip by telling the Mrs. that you’re taking stuff to Goodwill.
Cleared out the garage and loaded up the truck this evening.
Pent up supply?
The market seems even more localized than earlier this year. Even within a zip code, some neighborhoods sell better than others. I think buyers can be more picky, but when a good house comes up priced right, it goes quickly. For example, a house 5 doors down from me went pending in 4 days, but a couple blocks away, another house has been on the market for 2 months. (Same builder, similar year, same neighborhood, similar price)
I guess free speech is not free on this blog.
Banning me will not stop the 20-40% housing market free-fall by 2012.
JTR, you are a typical realtor… a scumbag sales man… you could not care a less about anyone but yourself and your commission.
Jerkoff!
Ain’t proxies great?
Why don’t you post something contructive, and put a real email address behind it.
Can you say Passive Aggressive?
CA Renter, spot on about “who’s left.” YOU . . . you’re good.
JtR Banned Me must be a realtor who had a run-in with JtR, thus the animus.
LOL! Thanks, Blur.
I guess we find out on Tuesday if the FED starts QE 2….