New interactive maps such as the one Zillow has help show where the inventory declines have been the most dramatic.
For example, in Northville,Mi. where inventory was down in June by nearly 30% if not more from one year ago,the biggest decline if for the least expensive third of the housing market, where supplies are down 50%. This reflects heavy demand from investors for cheep properties that can be held off the market and rented at a profit.
On the sellers side, most home prices below $250,000 are attracting a large number of offers and often exceed the asking price. That's created a "dire" situation for home buyers. Any offer from an ordinary home buyer is typically going to be less attractive then the multi "all cash" offers from investors with few strings attached and no appraisal required. Many ordinary buyers are coming away empty handed after submitting 10 or more offers.
Inventories are also low in some of the hardest hit markets those feared to have a large number of shadow inventory of foreclosed homes because many homeowners can't sell without taking a big loss. That means markets with high levels of underwater borrowers, or those who owe more than their homes are worth, are perversely seeing fewer homes listed for sale.
For the nation as a whole, inventories were down by 20% on average from one year ago, but it was the middle tier that saw the largest decline in listings , followed by the top end and then the low end. Markets that have seen less severe declines in home prices have seen smaller inventory drops.
Holly Hurd is a REALTOR with Coldwell Banker Weir Manuel in Northville, Michigan 48167
hollyhurd@hotmail.com
www.Northvillehomes4sale.net
Holly Hurd ~Living in the Northville, Michigan area for 40+ years , Holly Hurd is graduate of Northville High School, Schoolcraft College, Michigan State then raising her own family here Holly Hurd has first hand knowledge and knows the area quite well Please feel free to contact her for all your real estate needs
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