June 28, 2006

Houses Sitting on Market Longer

The tell-tale sign of a stagnating real estate market? When homes for sale start lingering - and that's exactly what real estate brokers and other industry watchers say they're seeing now.

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The National Association of Realtors does not maintain national time-on-market figures. But inventory - the number of homes for sale - spiked 37 percent for the 12 months through April 30, the most recent data available.

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At the same time, the rate of sales has slowed, so that there is now 6 months worth of supply, up from 4.1 months a year earlier.

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All that supply means homes are sitting around longer and that sellers are asking more than buyers are willing to pay — an indication that prices may have to come down.

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Could this be just what home buyers need?� Could we be seeing the beginning of a real "buyer's market?"

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Read the complete story here…

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