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Turning Point for Housing Market? Key Drivers Shift from Supply to Demand

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housing_market_object_keysRising inventory, slow-and-steady price increases signal healthier outlook in most markets

Realtor.com®, a leader in online real estate operated by Move, Inc., has released the realtor.com® National Housing Trend Report for August 2013. As the year’s peak home-buying season comes to a close, key market indicators point to a shift in the dynamics of the housing market, suggesting that future home value appreciations may likely be driven by market demand, rather than inventory shortages.

An analysis of the summer home-buying season ending in August shows year-over-year changes now within the single-digits for three key indicators – inventory count, median age and median list price, signaling a leveling of the market not seen for some time. The national market was virtually flat month-over-month compared to July for both inventory and median list price, and registered a slight increase in median age of inventory.

“Where we have seen significant volatility in many markets, including double-digit declines in inventory as well as increases in median price for both yearly and monthly views, we are now looking at a housing market that is less heated and moving closer to normalcy,” said Steve Berkowitz, CEO of Move.

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