by Calculated Risk on 3/11/2008 05:05:00 PM

The WSJ reports: Glut of Homes on the Market Grows, New Data Shows

The supply of homes available for sale in major metropolitan areas grew modestly in February, new data show.

Total listings of homes in 29 metro areas at the end of last month were up 1.2% from a month earlier, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif.

In January, the inventory of existing homes increased 5.5% according to the National Association of Realtors (NAR). If the number of listed homes a further increased 1.2% in February (per ZipRealty's sample) that would still put the early season inventory increases above normal.

It is very likely that we will see record nominal inventory levels soon, possibly in April. Note: the current inventory record is 4.65 million units set last July. Last month the NAR reported a record January inventory of 4.19 million.