One of the problems over the last year with the housing market has been an oversupply of housing inventory.
As with any commodity, when there is a high level of supply and there is limited demand, prices drop. In order for prices to start climbing again, we need for supply to drop and for more buyers to start buying.
This year started off a bit rocky with supply in January 2008 significantly higher than the supply was in January 2007. Since then, inventory levels have stabilized and have even dropped in some areas.
Each week, my broker Shawn Kelsey, tracks the inventory for each of the 4 counties that make up the St. Louis area. Yesterday, he sent out this chart:
*** Key: STL = St. Louis County, STC = St. Charles County, City = St. Louis City, Jeff = Jefferson County
This is good news for everyone. With inventory levels stabilizing, sellers shouldn’t need to slash prices to get their homes sold. There are still good deals out there for buyers, and it is good for buyers to have prices start climbing. No one wants to buy a home that is worth less next year.
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