Lack of Inventory Latest Headach For Home Sales

Real estate listings were down by 49% in Miami, by 48% in Phoenix and by 46% in Orlando, Fla. Housing inventory was down from one year earlier in all 146 markets tracked by Realtor.com except for Denver and El Paso, Texas. While falling inventories are typically a sign of health, because reduced competition can boost prices, that isn’t the case right now. Instead, real-estate agents say, people are pulling their homes off the market rather than try to sell them at today’s discounted prices. At the same time, banks have been more slowly moving to take back properties through foreclosure ever since processing irregularities surfaced last fall, temporarily reducing the supply of foreclosed properties. The inventory is so low, that despite lower prices and low interest rates, it’s harder than ever for buyers to find their dream home.

Wall Street Journal  October 17, 2011