Inventories for unsold dwellings in the U.S. rose during the month of August. These include Fannie Mae homes for sale, other types of foreclosed residential properties, newly built dwellings and existing homes. The rise marks the eighth consecutive month that housing inventories have moved up.
Inventories of unsold newly built houses and foreclosed homes in Philadelphia, PA are at a one year and a half high with a 10.6% annual increase. The figure is the same in Houston, Texas and in Orange County, California. The data was provided by ZipRealty and was based on the 26 housing markets tracked by the firm.
Available residential properties for sale in these 26 markets, including foreclosed homes in Pennsylvania, climbed by 0.4% in August compared with July. These totals include townhomes, condos and single family dwellings. Analysts have revealed that inventories for unsold houses traditionally spike in August and have not shown a change in trend for the past 28 years.
According to August housing market data, inventory increases were highest in areas where bidding contests on properties under listings of foreclosed homes for sale caused housing supply to decline to low levels a year ago. These areas include Las Vegas, Phoenix and San Diego.
August inventories for existing, newly built, foreclosed properties and Fannie Mae homes for sale rose in Las Vegas by 9.3% compared with July 2010. In Phoenix, August inventories are up by 4.6%, while San Diego recorded a jump of 3.8% when compared with July figures.
When it comes to year-by-year increases, San Diego recorded a 59% rise and Orange County posted an increase of 43%. Los Angeles, meanwhile, recorded a 25% rise in inventories compared with year-ago levels.
Analysts have revealed the one of the factors creating problems for the housing market is the fact that most home sellers cannot afford to lower their homes' prices without going below the amount owed on their mortgages.
On the other hand, homebuyers are not buying since most of them believe that prices will drop further and mortgage rates are going to remain low. Analysts have stated that in short, buyers of Fannie Mae homes for sale and other for-sale dwellings are waiting for sellers to make the first move, while the latter are hoping that buyers will take advantage of low mortgage rates and low prices and start shopping for homes.
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