Housing shortage eases in some tight markets

Rising inventories could boost sales

Some relief may be in sight for a housing crunch that’s been driving up home prices and crimping sales across the country.

Housing inventories rose in the third quarter from a year ago in 21 of the 100 largest markets, according to real estate research firm Trulia. Although small changes in the figures can represent normal volatility, six metro areas recorded annual increases of more than 20% — Fort Myers, Fla.; Miami; Las Vegas; Fresno, Calif.; Sarasota, Fla; and Oklahoma City — up from two in the second quarter.

Some of the markets are in the so- called “sand states” of Florida, California and Nevada, which experienced some of the biggest price declines in the real estate crash but also have led the recovery in recent years. As a result, their housing stocks dwindled, but are now being replenished.

“My belief is this is the start of a turnaround in inventory in the U. S.,” says Trulia chief economist Ralph McLaughlin. He noted, however, that it could take six months to a year before a shift is evident in a significant part of the country.

Nationally, housing inventories fell 10.1% to a 4.6- month supply in August from a 5.1- month supply a year ago, the National Association of Realtors said last week. That was the lowest August stockpile since 2004, says NAR chief economist Lawrence Yun.

Yun blamed the shortage for his

USA TODAY A long- standing shortage of inventory is eating into home sales in parts of the country.