Accelerated Foreclosures Are Aggravating The Imbalance In Housing Supply

With the homebuyer credit over, accelerated bank foreclosures are aggravating the imbalance in housing market supply and demand. Home listings increased in the traditionally slow month of June …

With the homebuyer credit over, accelerated bank foreclosures are aggravating the imbalance in housing market supply and demand. Home listings increased in the traditionally slow month of June as well as in the first six months of 2010, while asking prices remained stagnant. See the following article from Property Wire for more on this.

The number of residential properties listed for sale in the US is rising with prices remaining flat, according to the latest Altos Research report.

After increasing for the first time in nine months in May, asking prices for active home listings were virtually unchanged in June in the company’s 10 city composite price index.

In addition, inventory of existing homes for sale increased both in June and for the first half of 2010.

The June median listing sales price for single family existing homes in Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, and Washington DC, was $477,937 in June, down $146, about 0.03%, below the May median of $478,083, the report shows.

The 10 city composite median price bottomed out at $470,017 in January 2009. The composite gradually increased to $509,030 in July, before a nine month run of declines. Since the end of March, prices in the 10 city composite are up 0.2%.

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Altos Research said 13 of 26 markets it tracks reported increases in asking sales prices for homes during the month of June. For the first six months of the year asking prices were up in 14 markets. San Francisco led both categories with a 2% increase June and an increase of 4.4% quarter over quarter.

This was followed by a 1.5% increase in June in San Jose, 15 in Austin, 0.9% in Dallas and 0.8% in Cleveland.

Phoenix saw the largest fall, down 2.4% from June and 3.9% in the first quarter, followed by a fall of 2.3% in Miami, down 0.8% in Washington DC, 0.6% in Las Vegas and 0.5% in Boston.

Listing inventory totaled 2.8% and 5.4% for the quarter. Chicago was the only market where listing inventory decreased in June, but the area was still up 0.7% for the quarter.

While Detroit posted a 1.6% increase in listing inventory during June, it was the only market with a decrease in listing inventory for the quarter, down 2.1%. San Francisco lead all markets in inventory volume, up 7.6% in June and 13.5% for the quarter.

A separate report from real estate brokerage ZipReality shows that the number of homes listed for sale grew in many US cities in June, a month that typically brings a slowdown in listings.

Its shows that the supply of homes available for sale in 27 major metropolitan areas at the end of June was up 3.7% from May. The data includes all single family homes, condominiums and townhouses listed on local multiple listing services in markets where the firm operates.

Compared to a year ago, the June inventory in the 27 markets covered by ZipRealty was up 2.1%. Western markets saw the biggest month over month increase in inventory, rising by 10.5% in Las Vegas, 9.4% in San Diego and 7% in Orange County, California. Inventory fell in just one of the markets, down 1.5% in Jacksonville, Florida.

Inventory could continue to rise over the second half of 2010 as more banks take title to homes through foreclosure. More than seven million households are behind on their mortgage payments or in some stage of foreclosure.

Meanwhile, demand appears to have fallen sharply in the months following the expiration of the tax credit. New home sales fell to a record low in May, while pending sales were down 30% from April. Mortgage rates remain near 60 year lows, and yet demand for home purchase loans fell to a 14 year low last week, according to the Mortgage Bankers Association.

This article has been republished from Property Wire. You can also view this article at
Property Wire, an international real estate news site.

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