Inventory of homes for sale in St. Louis drops almost 20 percent from year ago

dennis-norman-st-louis-realtor-According to a report released by Realtor.com, the inventory of homes, condominiums, townhouses and co-ops for sale in St. Louis dropped by almost 20 percent (19.79%) in May 2012 compared to a year ago, just a little below the national decline of 20.07 percent. On another positive note, the median list prices of homes for sale in St. Louis increased 3.43 percent in May from a year ago, and the median time homes for sale in St. Louis have been on the market came in at 72 days which is down 15.29 percent from a year ago.  See the complete report for all 146 cities covered by clicking here)

Industry expert says it will take five years to absorb existing home inventory

Simple economics tells us that when supply exceeds demand prices suffer, just as we have seen in the housing market over the past three-plus years. A report by Brendan Lowney, a macroeconomist with Forest Economic Advisors (FEA) estimates that an excess home inventory of 2.5 million homes exist at this time. He says that this oversupply has put downward pressure on home prices, which in turn has caused a variety of undesirable effects, such as pushing more home owners “under water” which, in turn, causes even more defaults, thereby further increasing the oversupply. Continue reading “Industry expert says it will take five years to absorb existing home inventory