Inventory is on the rise for the second month in a row, according to the latest data from Movoto. This is good news for homebuyers, as more houses on the market means less competition from other prospective buyers.
Movoto’s data revealed that there were 3,574 more homes on the market in June compared to May. While the increase in inventory is a sigh of relief for many, it also comes with a catch. The list price per square foot also rose in the past month, from $179 in May to $181 in June.
The rise in price per square foot means that inventory has not grown to the point where home prices will fall; however, if the trend of rising inventory holds, prices will begin to drop in the next few months.
Sacramento saw the most dramatic increase in the list price per square foot. In June 2012, the average home listed at $91 per square foot. At the end of last month, the price rose to $153, a 68.1% increase.
Chicago and New Orleans are the only two cities that saw a decrease in price per square foot.
Year-over-year, 32 of the 38 cities tracked by Movoto saw a drop in total inventory. The total inventory across tracked cities dropped 20.5% over the same time last year. In June 2012, there were 119,014 homes on the market, compared to 94,640 a year later, a drop of 24,374 units.