Saturday, September 04, 2004

National Association of Realtors® reports home inventory increasing

According to the National Association of Realtors®, "the U.S. housing inventory is still tight, at 4.3 months, down from 4.7 months a year earlier, but some markets have seen a noticeable boost in supply."

"The inventory of homes for sale in Orange County, Calif., for instance, rose from 1.4 months in April to 7.5 months in July; and year-over-year gains have hit the double digits in more than a dozen New Jersey counties as well as in Boston."

"What University of California at Los Angeles economist Edward Leamer calls "a day of reckoning" is expected to arrive slowly, mainly because homeowners would simply stay put if prices dramatically fell."

"While some experts worry about appreciation outpacing incomes and rents, NAR chief economist David Lereah and other industry insiders believe that low interest rates will continue to fuel the housing boom."

To read the entire article, go here.

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