Supply of Homes For Sale Falls in July

Emeryville, CA, Aug. 6, 2009--The supply of homes listed for sale fell again in many U.S. cities last month as bargain hunters continued to search for foreclosed properties.

The supply of homes available for sale in 28 major metropolitan areas at the end of July was down 2.5% from a month earlier, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm.

The Zip data cover all single-family homes, condominiums and town houses listed on local multiple-listing services in metro areas where the firm operates.

On a national basis over the past 25 years, inventories in July have fallen by an average of 1% from the June level, according to Zelman & Associates, a research firm. Compared with last year, the July inventory in the 28 metro areas was down 27%, according to the Zip data.

The exact level of supply is unclear because the figures don’t include all of the foreclosed homes that banks are preparing to sell. According to some industry estimates, as many as half of those homes aren’t included on multiple-listing services at any given time.