Wednesday, July 30, 2008

Housing inventory is the key to recovery

This very interesting chart comes from the WSJ and highlights the current plague that torments the housing market in the U.S. While there are some improvements in unsold housing inventory in certain metro areas (" of homes listed for sale declined from a year earlier in 19 of 28) others continue to pile on in part due to a growing glut of foreclosed homes. According to Barclays there are about 721,000 foreclosed homes on the market nationwide, up from 112,000 two years ago.

From the WSJ:
Housing markets generally are considered roughly in balance when the number of homes listed for sale is enough to last about six months at the current sales rate. Based on the average sales rate over the past year, The Wall Street Journal survey shows that supplies are enough to last about 13 months in the Atlanta and Phoenix areas, 15 months in Chicago, 19 months in Las Vegas, and 37 months in Miami-Fort Lauderdale. For condominiums alone in Miami-Dade County, the supply is enough to last 51 months.

click for interactive graphic (problems click link above)

source: Amid Housing Slump, Glut Eases Slightly

By JAMES R. HAGERTY, July 29, 2008; WSJ

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