Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Housing inventory rises again in April

The number of homes on the market remains high, as the housing crisis continues and the Spring selling season approaches its peak.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Les Christie, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- The number of homes for sale was on the rise again in April, according to figures from Zip Realty, a California-based real estate broker.

Nationally, inventories expanded 3.5% last month in the 29 major markets that the company tracks, and were up 6% over the same period last year.

"Inventories in some cities may be topping out," said Michael Larson, a real estate analyst with Weiss Research. "But this shows that sales are still weak."

Even some markets that used to be considered bulletproof have seen inventories grow. Twelve months ago, Seattle had a fairly small number of homes for sale. But inventory there has since spiked 45.9% to 36,632.

The number of homes for sale in San Francisco rose 23.8% and Washington, D.C. inventory increased 18% over the same 12 months.

Chicago saw the biggest jump in inventory between March and April, with 82,000 homes listed for sale, up 5.9%.

And these bloated inventories have put pressure on home sellers to slash prices that have already been on a steep decline. In Orange County, Calif., 49.8% of homes on the market in early May have had prices reductions, according to the report. In Phoenix, 49% of the homes have lowered prices, and in Sacramento 48.8% of homes have been discounted.

Larson said, "There's been very aggressive pricing and increased incentives by builders. And banks taking back properties in foreclosure have also been very aggressive in selling those homes off again."

He adds that inventories may be peaking, if for no other reason than that far fewer new homes being built.

In January, 2006 new homes were coming on the market at an annually adjusted rate of 2.3 million units. The pace of new home construction has now fallen nearly 60% since then, to 947,000 a year. To top of page

Find mortgage rates in your area

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
Where Millennials are buying homes Here are the top 10 markets where Millennials represented large shares of mortgages, according to Realtor.com More
Ralph Lauren's many looks A look at his brands and iconic creations More
8 biggest job killing companies of 2015 Whole Foods became the latest corporate giant to lay off workers. Here's a look at the companies that have announced the most jobs cuts this year. More