Slim Pickings Are Latest Headache For Home Sales - Wall Street Journal

We sent an email to: Please click on the link inside the email to complete your registration Please register to gain free access to WSJ tools. This service is temporary unavailable due to system maintenance. The username entered is already associated withanother account. Please enter a different usernameThe email address you have entered is already in use. Please upgrade your browser now to enjoy a better experience: Why upgrade. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visitwww. Housing Inventories Down The number of Homes for Sale fell for the fourth straight month in September to the lowest level of the year. That is the lowest level since the company began its count in 2007. While falling inventories are typically a sign of health, because reduced competition can boost prices, that isn't the case right now. At the same time, banks have been more slowly moving to take back properties through foreclosure ever since processing irregularities surfaced last fall, temporarily reducing the supply of foreclosed properties. The shrinking supply isn't driving up prices because demand is soft. Yet there is still a substantial "shadow" supply of foreclosures and other distressed homes, estimated to be more than one million, that is likely to stream onto the market in the coming years. The pent-up supply is another constraint on any of the price gains that might normally occur when supply falls. That can further chill sales, as buyers become afraid to overpay while sellers are similarly cautious about underpricing their homes. Nobody's complaining about the pricing or the interest rates. Listings were down by 49% in Miami, by 48% in Phoenix and by 46% in Orlando, Fla. Housing inventory was down from one year earlier in all 146 markets tracked by Realtor. Kutash and his wife, who recently had a baby, are looking to move out of their one-bedroom apartment in West Hollywood. They don't include unsold homes listed as "for sale by owner" or other properties that don't find their way onto the multiple-listing services. The NAR is in the process of recalibrating its methodology. Both sets of data show housing inventory at a historic low. Mortgage applications for home purchases were 3% below year-ago levels during the first week of October, according to the Mortgage Bankers Association. All Rights ReservedThis copy is for your personal, non-commercial use only. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visitwww. Unfortunately for the panel, much of it was advice about what not to cut. To view or change all of your email settings, visit the Email Setup Center. Is it possible that a world without religion can be, on the whole, a better place to live. Question of the Day What do you think of the 11-year sentence given to Raj Rajaratnam for insider trading. Election Day What do you think of Herman Cain's 9% plan for personal, corporate and national sales taxes. Question of the Day Is a government mandate to buy health insurance or pay a fine constitutional. To view or change all of your email settings, visit the Email Setup Center. What's your advice to help others put more money away. Your answer could be featured in an upcoming Journal Sunday column. The language you used does not comply with community standards. The Journal Community encourages thoughtful dialogue and meaningful connections between real people. We require the use of your full name to authenticate your identity. The quality of conversations can deteriorate when real identities are not provided. Please enter your first and last name First name: Last name: Create a Journal Community profile to avoid this message in the future. Homes for Sale