The bidding wars aren’t over yet, but some of the areas with the tightest inventory saw double-digit increases in the number of homes for sale between May and June.
Bidding wars aren’t over, but the number of homes listed for sale is increasing, by quite a bit in some of the tightest markets.
According to the latest National Housing Trend Report by Realtor.com, the number of homes listed for sale grew 4.26% from May to June, with a total of 1.93 million listed for sale nationwide.
The number of homes for sale grew significantly more in some areas where the inventory shortage had become the most acute, particularly in California.
“Inventories on Realtor.com reached their highest level in June since the beginning of 2013. We’re seeing increases as high as 51% month-over-month in many Southern California markets,” Steve Berkowitz, chief executive officer of Move, which operated Realtor.com, said in a news release. “Sellers are continuing to list homes at a steady pace into late June, which moves us past the traditional homebuying season, as mortgage interest rates continue to rise. These are all signs that the market recovery is continuing at a healthy pace.
The number of homes listed for sale nationwide in June was 7.29% below the number a year previously.
Some of the California cities where inventory was tightest showed double-digit increases in the number of homes for sale from May to June. Those included Orange County (up 51.54%), Los Angeles-Long Beach (up 45.69%), Riverside-San Bernardino (up 44.72%), Ventura (up 43.53%), San Diego (up 18.14%), Bakersfield (up 12.47%) and Oakland (up 12.14%).
Other cities showing big increases in inventory from May to June were Dayton-Springfield, Ohio (up 14.06%), Santa Fe, N.M. (up 13.82%) and Anchorage, Alaska (up 13.77%).
The only city that showed a double-digit decrease in inventory month-over-month was Naples, Fla., where the number of homes listed for sale dropped 10.49%.
The cities that showed the greatest decline in inventory year over year were Boston and suburbs (down 35.10% and down 9.98% from May); Denver (down 30.14% but up 2.06% from May); Boulder-Longmont, Colo. (down 26.52% and up 2.55% from May); and Detroit (down 25.66% and down 0.78% from May).
Redfin, which tracks real-estate sales in 19 major markets, also noted that the number of homes for sale was on the rise. While 70% of transactions still include multiple offers, that number is declining, Glenn Kelman wrote at the Redfin blog. He concluded:
What has happened after six years of depression, and six months of manic bubbliness, is that we have returned at last to a normal market: You’ll pay more now than you would have at the absolute bottom in late 2012, but there will be more – and better – homes to choose from, and a better chance of buying one.
This article was originally published by Teresa Mears on MSN Real Estate, July 16, 2013. To see the original article, click here.