According to a report from ZipRealty the number of US homes listed for sale rose 3 percent from June to July, marking the seventh consecutive month with increased listings. The data indicates the imbalance in the housing market between supply and demand is growing. The added inventory can drive values down further, homes will likely sit on the market longer, and foreclosures are contiuing across the country, which could mean even more added inventory in the near future.
A recovery in the struggling market, where the current recession first hit, is key to the recovery of the overall economy. The total number of single-family residences and condos in the nation's 26 largest metro areas was reported at just over 699,000 in July, up 2.58 percent from June. As compared with July 2008, the nation's inventory of unsold homes is up almost 7 percent.
Low interest rates and low prices have helped the housing market to take huge strides over the last year, but the April 30th expiration of federal and state tax credits for homebuyers has set the market back. The federal tax credit required homebuyers to sign a purchase agreement by April 30th and close by June 30th. The close deadline has been pushed back to September 30th, so some analysts fear that the full effect of the end of the tax credits has not been felt.