Prices rose and inventory declined in July on an annual basis, according to the ""State of the Real Estate Market"":http://www.movoto.com/blog/market-trends/state-of-the-real-estate-market-august-2013/ report released Monday by ""Movoto Real Estate."":http://www.movoto.com/ However, on a monthly basis, inventory increased and list price remained the same, signifying the market is reaching equilibrium, according to Movoto.[IMAGE]
""The fact that the list price has not increased on a month-over-month basis indicates that the inventory supply is starting to catch up with demand,"" Movoto said.
Movoto also said the steady list price from June to July is to be expected based on historical data. ""[T]he fact that prices did not increase from June to July is seasonal,"" Movoto said.[COLUMN_BREAK]
The list price for both June and July was $181 per square foot across the 38 major cities Movoto tracks.
Before July, the list price had increased consecutively for six months.
The 4 percent increase in inventory from June to July was also not surprising, according to Movoto, which said it ""is to be expected as we enter the busy part of the home-buying season.""
Annually, home prices increased 14.9 percent in July, while inventory declined 16 percent.
The cities with the greatest price increases in Movoto's survey were Sacramento, California (64.5 percent), Phoenix, Arizona (39.6 percent), and Mesa, Arizona (32.6 percent).
Only two of the 38 cities Movoto tracks experienced price declines over the year: New Orleans (-2.2 percent), and Chicago (-1.3 percent).
Inventory declined in 32 of the 38 cities with the greatest decreases taking place in Detroit (-45 percent), Sacramento, California (-44 percent), and Boston (-43.5 percent).
Las Vegas was the greatest outlier with a 23.3 percent increase in homes on the market over the year. Despite the increase, list price per square foot increased by 24.1 percent in the city.