In the wake of the housing market collapse, there were a number of areas hit especially hard with foreclosures. But as investors continue to buy up these homes and convert them into affordable rental units, inventories have steadily dropped in some of these metros.
Las Vegas currently has one of the weakest markets in the country. This is due to a high home repossession rate, low property values and unemployment far above the national average. However, the metropolitan area's inventory is now 66 percent below where it was a year ago, according to a report from Movoto.
At the beginning of June there were an estimated 3,278 homes in the Las Vegas inventory, down from 9,704 the previous year.
Meanwhile, compared to this time last year, real estate data shows the Miami inventory has decreased 62 percent from a year earlier to nearly 5,274 properties.
Even some of the nation's strongest housing markets have seen their inventories decline, but not as a result of investor activity. At the beginning of June, there were just 693 homes for sale in San Francisco - representing a 65 percent decrease from the previous year. This change is believed to be a result of stagnant home prices, rather than high REO property activity since San Francisco has maintained one of the lowest foreclosure rates during recent years.