Throughout much of 2012, high affordability offered by record-low mortgage rates and low home prices has benefited buyers. This increase in activity has resulted in a jump in home sales, and consequently, a lower inventory throughout many parts of the country. Data from Realtor.com shows certain markets nationwide are performing well now because of these factors.
According to October housing data, the median are of inventory of homes listed for sale fell 12 percent when compared to the same month last year. Inventories in many cities have dropped to historic lows, as optimal housing market factors, including record-low mortgage rates, have prompted buyers to scoop up properties.
More than half of the list of cities where homes are selling the fastest are located in California, which is also where home prices have increased significantly since the start of the national housing market recovery. Data from October shows the median age of inventory dropped 11.81 percent when compared to October 2011, while the median price of $189,900 matched that from a year ago.
In Oakland, California, the median age of inventories of properties for sale was 21 days in the month of October, and 26 days in Stockton-Lodi. Homes in Sacramento, California, remained on the market for 32 days while the median age of San Francisco properties listed for sale was 44 days, as well as in Fresno. San Jose, California, was the final market to be included on the list of quick-selling markets, matching Phoenix's median age of 47 days. In Denver, the age of inventories was 40 days.
While lower inventories may mean a slimmer selection of potential properties for prospective buyers, they are typically indicative of an improving housing market. One downfall of lower inventories includes less significant growth of home prices. However, this may provide those considering making the investment with more reason to purchase, as increasing prices may have prevented some from beginning their property search.