Supply of Houses Is Finally Rising in Parts of U.S.
The article has a cool graph of median house price divided by the typical rent for a 1,500-square-foot apartment in select cities. This ratio was about 10 in 2000 and is now more than 20.
By JAMES R. HAGERTY
Staff Reporter of THE WALL STREET JOURNAL
August 31, 2004; Page A2
The number of houses on the market is finally rising in some parts of the U.S. where shortages have led to soaring prices.
Rising supplies are particularly notable in California, where the median home price has shot up 21% in the past year to $463,540. The California Association of Realtors says the inventory of previously occupied single-family homes in Orange County was enough to last 7.5 months at the current sales rate in July, up from 1.4 months in April. For the whole state, the supply stood at 3.3 months in July -- the first time since February 2003 that the inventory has topped three months.
Inventories also have risen in some other parts of the country. A survey by Jeffrey G. Otteau, who runs an appraisal firm in East Brunswick, N.J., showed that the inventory of homes in the 18 New Jersey counties he covers was up 14% in July from a year earlier. Inventories are up about 10% from a year earlier in Boston but have fallen more than 50% in Manhattan. In Las Vegas, where the median home price has soared about 50% in the past year, developers are responding with more plans for high-rise housing.
Nationwide, the inventory of newly built homes in July jumped 14% from a year earlier. The National Association of Realtors says the national supply of resale homes remains tight at 4.3 months, down from 4.7 months a year earlier. But Realtors report fewer bidding wars and more overpriced houses that linger for months rather than selling in days. Ben Coleman, owner of Century 21 Hartford Properties in San Francisco, said the market is still strong but no longer "on fire."
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