Sep 18, 2013
More data confirm: Inventory situation improving, sellers market receding
18 Sep 2013
Posted by Andrew Kantor
On September 13, we told you how we were looking at the end of the current (in most places) sellers’ market. Rising prices, we said, would mean fewer people underwater, and thus more people able to (finally) sell.
Well, HUD’s latest Housing Scorecard shows that’s happening.
The number of underwater homeowners has fallen by 42% since the beginning of 2012 – from 12.1 million to 7.1 million as of the second quarter of 2013 – lifting 5.0 million homeowners who owed more on their mortgages than they were worth above water. In the first half of 2013, nearly 3.5 million homeowners have returned to positive equity.
Meanwhile, HousingWire reports that "Previously underwater homeowners are ready to buy again" — meaning, in reality, that they are ready to sell. (Most people have to sell before they can move up.)
Meanwhile, NAR reports that inventory, while still 3.6 percent below last year, is up more than 21 percent since January.
In other words, the end of inventory issues — and the end of the sellers’ market — are on the horizon.