While inventory levels of homes for sale are up nationally, the Memphis area has continued to see a decline.

Local inventory is down more than 7 percent from levels in July 2007, Memphis Area Association of Realtors officials said Monday.

Although local home sales are still down from last year, moderating inventory is an early sign that conditions are stabilizing in the local market, MAAR said.

Nationally, however, the number of unsold properties hit an all-time high, the latest indication that the worst housing slump in decades is far from over.

The good news was that sales of existing homes rose 3.1 percent in July, surpassing expectations, according to the National Association of Realtors.

But prices were down, with the median price for a home sold in July dropping to $212,000, down by 7.1 percent from a year ago.

Despite the third monthly sales increase this year, the number of unsold single-family homes and condominiums rose to 4.67 million, the highest number since 1968, when NAR started tracking the data.

That represented an 11.2-month supply at the July sales pace, matching the all-time high set in April.

Until the national inventory level is reduced to more normal levels, analysts say, the housing slump is likely to persist.

The inventory level is being driven higher by a massive wave of mortgage foreclosures.

Between 33 and 40 percent of sales activity is coming from foreclosures or other distressed properties, estimated Lawrence Yun, chief economist at the Realtors group.

The Commercial Appeal
Tuesday, August 26, 2008