There is starting to be a shift in the dynamics of the housing market, which will mean future increases in home values will be driven by market demand rather than the shortage of homes for sale, according to Realtor.comís August National Housing Trend Report.
"Where we have seen significant volatility in many markets, including double-digit declines in inventory as well as increases in median price for both yearly and monthly views, we are now looking at a housing market that is less heated and moving closer to normalcy," said Steve Berkowitz, CEO of Move Inc., the parent company of Realtor.com.
The study found the net number of listings increased even though the summer home buying season is ending. Close to one-third of the 146 markets covered in the report are within 5% of last year's inventory levels, and more than two-thirds (99) of markets registered a net increase in inventory over last month.
Median listing price in August was $199,900, unchanged from July and over 6% from August 2012.
Meanwhile 123 of the covered markets showed a year-over-year increase in their median list price, with 78 markets registering an increase of 5% or more. Of the 18 markets reporting a list price decline, only 11 markets had a year-over-year list price decline of 1% or more, and only three markets had a list price decline of 5% or more.
But not all is hunky-dory, Realtor.com added. It said there are smaller industrialized markets in the Midwest and the Northeast which continue to struggle.
In addition several major Florida markets are showing signs of re-emerging weakness. Augustís data shows the uneven nature of the housing recovery and its dependence on the strength of the local economy, it said.