The simple law of supply and demand is what has strengthened the market.
As the housing inventory has lessened it has allowed the demand to level out. The last three listings I had went in the blink of an eye. My clients have learned, if the house is worth it, it goes fast. There are sectors that do not move as quickly in certain price brackets or neighborhoods, but the market is much stronger and continuing to strenghten...
Here is another update using inventory numbers from HousingTracker / DeptofNumbers to track changes in listed inventory. Tom Lawler mentioned this last year.
According to the deptofnumbers.com for (54 metro areas), inventory is off 22.6% compared to the same week last year. Unfortunately the deptofnumbers only started tracking inventory in April 2006.
This graph shows the NAR estimate of existing home inventory through July (left axis) and the HousingTracker data for the 54 metro areas through early September.
Click on graph for larger image.
Since the NAR released their revisions for sales and inventory last year, the NAR and HousingTracker inventory numbers have tracked pretty well.
On a seasonal basis, housing inventory usually bottoms in December and January and then increases through the summer. Inventory only increased a little this spring and has been declining for the last four months by this measure. It looks like inventory has peaked for this year.
The second graph shows the year-over-year change in inventory for both the NAR and HousingTracker.
HousingTracker reported that the early September listings, for the 54 metro areas, declined 22.6% from the same period last year.
This decline in active inventory remains a huge story, and the lower level of inventory is pushing up house prices.
Read more at http://www.calculatedriskblog.com/2012/09/housing-inventory-down-23-year-over.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29#C6vtUtSXloADwzbK.99