USA TODAY released national statistics last week showing nationwide the supply of homes for sale continueing to shrink. They refer to year-to-year the first 2 weeks of January as down 14% in inventory. Yet demand is up 9.2%!
Here in Tampa Bay, we have been watching the Absorption Rate eat up available inventory month after month. This inventory turnover refers to how much of the existing inventory during the month was sold and removed from the market. We saw the trend begin back in March of 2011… but look what happened in 2012, especially in single family homes!!!
The result? Home prices have nowhere to go but up. Many sellers who have been waiting on the sidelines until their home values come back up have been renting their homes or condos. But the lack of sellers in the market is not the only thing keeping the supply of homes for sale down. According to Realty Trac, there are fewer distressed properties for sale. Nationwide, foreclosure sales were down 7 percent through the first nine months of last year from the same period in 2011. Here in Tampa Bay, of the 6101 listings left at the end of 2012 in Pinellas County only 17% of those were distressed. Yet 32.5% of those listings sold during the motn of December were foreclosures or short sales. Currently, our supply of homes for sale is down to a meager 4 months supply… equating to only 1 home per buyer looking!