Tuesday, May 12, 2009

Home Listings Drop in April

The supply of homes for sale in 29 major metropolitan areas at the end of April was down 3.6% from a month earlier, according to figures compiled by ZipRealty Inc.

This is a very bullish sign for housing.

Inventories typically increase in April as for-sale signs appear for the spring home-shopping season. Since 1982, the average increase in April from the prior month has been 4.8%, according to Zelman & Associates.

Compared with the year-earlier, the April inventory in the 29 metro areas was down 21%.

The only impediment to a full-fledged real estate bull market is the supply of foreclosed homes that haven't hit the market, yet. Once that suppply is absorbed house prices are going to climb very quickly.

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