Accoriding to the Wall Street Journal, housing inventories are down in the 29 major metropolitan areas surveyed by ZipRealty Inc. Typically, more homes are on the market in October than September, but this year the number has decreased slightly.
In the Indianapolis area, new listings coming onto the market are down about 10% from last year’s numbers. We often talk about how many months of supply is available. In Hendricks County in 2007 at this time of year there was about 8.8 months worth of inventory, this year there is about 7.8 months worth of supply. For Marion County, the supply has gone down from 10.3 months in 2007 to 9.6 months this year.
This is good news!
Having fewer homes on the market shows that things are starting to improve slightly for sellers. The laws of supply and demand indicate that if supply begins to decrease, demand will rise. Having fewer homes available to buy means that the market will begin to pick up again, and pricing may even start to rise.
If you are a potential buyer, NOW is the time to get off the fence. Waiting to see if prices go any lower is no longer a smart move. Nobody has a crystal ball that shows us exactly what the market will do, but this decrease in supply is an indication.
I predict that sellers will begin to see more showings. Typically this happens in the Spring anyway, so I suspect that in the Spring we will begin to see things moving again. If this trend continues, we might see an improvement in the market overall next year.