Industry News

Resale home inventory soars to 9.6 months

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The inventory of resale homes jumped to 9.6 months in July, as the sales rate for that month dropped 9 percent compared to the same month last year, the National Association of Realtors reported today. A for-sale inventory greater than six months is generally considered to indicate a buyer's market -- this statistic indicates the length of time it will take to deplete the for-sale inventory at the current sales pace. The existing-home inventory has climbed 31.5 percent since July 2006, when there was a 7.3-month supply. The inventory of single-family resale homes was 9.2 months in July while the inventory of condominiums and cooperatives rose to 11.9 months.The last time that the resale single-family inventory had reached this level was in October 1991, when it was 9.3 months, said association spokesman Walt Molony.The inventory was 4.3 months for the full year in 2004, 4.5 months in 2005 and 6.5 months in 2006, the association reported.The seasonally adjusted annual rate of existing-h...