Sales down, but inventory dropping

Though home sales were down in September, steady moving activity was still able to take a dent out of the nation's clogged housing inventory.

RE/MAX reported that September home sales in 54 metropolitan markets around the country were down 6.4 percent from August and 20.9 percent from the year before. Home sellers had to wait a little longer to pack their moving boxes, as homes on the market sold in an average 88 days, four more than the average of 84 days reported last month.

"We anticipated the drop in home sales this summer due to the tax credit, and we usually see sales in September fall below August levels, but we're encouraged by reports of signed contracts in the field," said Margaret Kelly, CEO of RE/MAX, adding that signed contracts could mean improved moving activity in the near future.

Relocating families were able to reduce the raw inventory of homes on the market by 2.8 percent from August and 0.52 percent from a year earlier. But at the same time, the supply of inventory grew to 9.8 months, meaning it would take that many months for the country to eliminate its current housing stock. In a healthy market, a six-month supply would be considered a strong balance.

High inventories are encouraging sellers to find new ways to appeal to relocating families. Many in Arizona are offering alternative financial agreements such as rent-to-own homes, reported the Arizona Republic, an arrangement that allows families to rent a home for a period of time before buying it.
 

More News