March 31st, 2014
Housing inventory may have been at a low in some areas during the past few months, but the good news is that analysts expect it to increase soon. According to a recent report from the National Association of Realtors, housing inventories have jumped 10 percent across the nation this year compared to 2013.
Some metro areas are surpassing others, reaching growth as high as 35 percent year over year. The NAR report looked at 146 U.S. metro areas, and these are the 10 that had the largest housing inventories in February, plus how much they rose:
“The Realtor.com National Housing Trend Report for February 2014 shows signs of seller confidence,” reads the report. “As prices continue to rise, more sellers are putting their homes on the market than this time last year, a sign of confidence in the gains sustained through the winter and an indication of a strong early beginning to the spring homebuying season.”
Unfortunately, progress wasn’t consistent across all metro areas, and some still saw a decline in housing inventory, including:
Good news for the foreclosure market
Overall, homebuyers can expect housing inventories to pick up in the near future, but this isn’t the only good news lately about the U.S. housing market. A recent report from Black Knight Financial Services found that the number of foreclosures in February dropped by more than 500,000 compared to the year prior, hitting 1.24 million. In addition, the number of foreclosure starts fell 30 percent year over year to only 92,000.
So what does all this mean for the future of the housing market? Many analysts believe things will soon be looking up now that the frigid winter weather is on its way out. The blizzards and subzero temperatures in January and February kept most homebuyers from going out into the market.
“The to-and-fro forces make this a tough market to forecast, but many economists see 2014 as a year of progress though at a slower pace, with modest gains in home prices for the nation on average,” said an article from The Christian Science Monitor.