Inventory Shortage Foreshadows Tight Spring Season

By
Real Estate Agent with RE/MAX Exclusive Collection

While the weather outside might be warming up a bit in the next few weeks, it looks as though the lean winter months will continue on for the housing market, as inventory continues to stay at record low levels.

Zillow recorded a 16.6 percent drop in the overall number of home listings for February as compared to just a year before in 2012. The greatest inventory declines occured among luxury properties, which experienced a 20.5 percent decline, while middle-tier homes fell 17.2 percent and bottom-tier homes fell 9.1 percent.

All told, the total supply of homes for sale as of January is at 4.2 months, the lowest it's been in nearly eight years. A healthy and balanced supply of homes is typically listed at a six month supply.

As a result of the shortage, we've seen home values rise up. While these do not match the numbers seen before the housing bubble burst, they are a signal towards stabilization. Standard & Poor's Case-Shiller data reported a 7.3 percent rise in the fourth quarter from the year prior, a rise that exceeded expectations.

Florida inventory as a whole has matched the pace set by the rest of the nation. Out of 99 metro areas, the only area from Florida that showed an increase in inventory was Fort Myers, making it a good time to sell your home in the Sunshine State.

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