June Housing Inventory Numbers RISE!

Housing Inventory Rises in Many Markets in June

The number of homes listed for sale grew in many U.S. cities in June, a month that typically brings a slowdown in listings. Inventory grew amid signs that demand plunged after the expiration of the home-buyer tax credit.

The supply of homes available for sale in 27 major metropolitan areas at the end of June was up 3.7% from one month earlier, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif. The data includes all single-family homes, condominiums and townhouses listed on local multiple-listing services in markets where the firm operates. (See all the inventory data.)

Inventories typically decline modestly in June, as the summer slowdown begins. Zelman & Associates, a research firm, says June listings nationally have fallen an average of 0.5% from May over the past 27 years.

Compared to one year ago, the June inventory in the 27 markets covered by ZipRealty was up 2.1%. Western markets saw the biggest month-over-month uptick in inventory, rising by 10.5% in Las Vegas, 9.4% in San Diego and 7% in Orange County, Calif.

Compared with the previous month, inventory fell in just one of the markets covered by Zip, declining by 1.5% in Jacksonville, Fla.

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.