Robert Bush 6:31 p.m., May 18
Homes listed for sale plunge in San Diego
Other California cities drop sharply, too
The number of San Diego County homes listed for sale on Zillow plummeted by 39.4% for the year ended late February, the company reported today (March 7). Among the 30 largest metro areas, the contraction in California was dominant: Sacramento's drop was the nation's largest, down 48%; Los Angeles was down 45.7%, and San Francisco 40.9%, followed by San Diego. The nationwide number was down 16.6%. This portends higher prices ahead. Zillow Chief Economist Stan Humphries says, "The supply of for-sale listings continues to dry up, driven in part by potential sellers trapped in negative equity [value of the home less than the balance of the mortgage] and homeowners that won't sell out of fear they won't be able to find a suitable home to buy later." But the lower inventory will result in higher prices, and many homeowners will no longer be underwater, and will list their homes, thus easing the inventory crunch.