Number Of For-Sale Homes Down Almost 17 Percent In February, Furthering Inventory Shortage

   Number Of For-Sale Homes Down Almost 17 Percent In February, Furthering
                              Inventory Shortage

Rising Home Values Expected To Enable More Owners To List Homes In Future,
Easing Squeeze

PR Newswire

SEATTLE, March 7, 2013

SEATTLE, March 7, 2013 /PRNewswire/ -- The overall number of homes listed for
sale nationwide on Zillow® was down 16.6 percent year-over-year in late
February, indicating a continuing inventory crunch as the market heads into
the busy spring selling season.

Zillow looked at all homes available for sale on Zillow on Feb. 24, 2013 and
compared it to the number of homes available on Feb. 24, 2012. The analysis
covers homes nationally and in the 99 largest metro areas covered by Zillow,
and across bottom, middle and top price tiers[i].

Nationwide, the greatest year-over-year decreases in inventory were among more
expensive homes, with the availability of top-tier properties falling 20.5
percent year-over-year. That was followed by middle-tier homes (-17.2 percent
year-over-year) and bottom-tier homes (-9.1 percent year-over-year). Only five
metro areas showed more homes for sale overall last month than in February
2012: El Paso, Texas (+18.5 percent); Albuquerque, N.M. (+8.1 percent); Little
Rock, Ark. (+7.7 percent); Fort Myers, Fla. (+1.5 percent); and Youngstown,
Ohio (+0.2 percent).

"The supply of for-sale listings continues to dry up, driven in part by
potential sellers trapped in negative equity and homeowners that won't sell
out of fear they won't be able to find a suitable home to buy later," said
Zillow Chief Economist Dr. Stan Humphries. "But the impact of constrained
inventory will create the solution to the problem. Over the past year,
inventory tightness has contributed to increases in home values in many
markets. As home values rise, some homeowners will be freed from negative
equity and able to list their homes, which will contribute to an easing of the
inventory crunch. While this inventory is coming, it may still be a
frustrating spring for buyers vying for what inventory is available. It's
important to be patient and not commit to paying beyond one's comfort level in
the heat of negotiations."

Large California metros experienced the biggest decrease in homes for sale
over the past year. Among the 30 largest metros covered by Zillow, four of the
top five in inventory contraction are located in California: Sacramento (-48
percent); Los Angeles (-45.7 percent); San Francisco (-40.9 percent); and San
Diego (-39.4 percent). Minneapolis-St. Paul, Minn. (-36.7 percent) rounded out
the top five.

While the overall number of homes listed for sale in February was down
year-over-year, the drop was less severe than in January[ii]. In January, the
number of for-sale listings was down 17.5 percent year-over-year, which could
indicate an easing of the inventory crunch. Almost two-thirds (63) of the
areas surveyed showed a smaller year-over-year decline in for-sale homes in
February than in January.

                     Year-over-year % Change In Homes For Sale Listed On
                     Feb. 24, 2013 vs. Feb. 24, 2012
Metro Area           Bottom-Tier Homes Middle-Tier      Top-Tier     All Homes
                                       Homes            Homes
UNITED STATES        -9.1%             -17.2%           -20.5%       -16.6%
New York             -13.3%            -23.2%           -19.3%       -18.9%
Los Angeles          -56.8%            -42.4%           -38.2%       -45.7%
Chicago              -11.5%            -15.2%           -19.8%       -16.2%
Dallas-Fort Worth    -9.8%             -20.6%           -24.6%       -20.7%
Philadelphia         -8.2%             -18.3%           -25.2%       -18.1%
Houston              -16.6%            -26.5%           -25.5%       -23.7%
Washington, D.C.     -26.0%            -21.4%           -22.7%       -23.3%
Miami-Fort           18.1%             3.5%             -20.9%       -6.9%
Atlanta              -44.3%            -33.9%           -23.2%       -32.1%
Boston               -19.1%            -28.2%           -24.4%       -24.2%
San Francisco        -51.0%            -40.0%           -34.9%       -40.9%
Detroit              -18.3%            -23.0%           -24.4%       -21.9%
Riverside, Calif.    -38.2%            -43.7%           -29.6%       -36.2%
Phoenix              -42.2%            -22.5%           -20.7%       -26.4%
Seattle              -31.7%            -13.2%           -19.5%       -21.2%
Minneapolis-St Paul  -44.6%            -31.2%           -34.7%       -36.7%
San Diego            -43.0%            -43.8%           -32.1%       -39.4%
Tampa, Fla.          -15.0%            -21.6%           -22.1%       -20.1%
St. Louis            -7.0%             -10.4%           -19.9%       -13.2%
Baltimore            -16.4%            -18.1%           -16.3%       -16.9%
Denver               -27.0%            -30.7%           -35.6%       -32.1%
Pittsburgh           -2.5%             -5.4%            -4.0%        -4.0%
Portland, Ore.       -24.5%            -15.1%           -21.7%       -20.5%
Sacramento, Calif.   -61.5%            -53.2%           -33.4%       -48.0%
Orlando, Fla.        -28.6%            -35.6%           -21.5%       -27.1%
Cincinnati           6.2%              0.9%             -7.0%        -0.5%
San Antonio          -16.1%            -21.3%           -18.7%       -18.7%
Cleveland            -4.6%             -7.4%            -18.0%       -10.5%
Kansas City          -23.0%            -32.4%           -37.9%       -32.4%
Las Vegas            -30.3%            -34.2%           -31.2%       -32.1%

About Zillow:

Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on
mobile and the Web, with a complementary portfolio of brands and products that
help people find vital information about homes, and connect with the best
local professionals. In addition, Zillow operates an industry-leading
economics and analytics bureau led by Zillow's Chief Economist Dr. Stan
Humphries. Dr. Humphries and his team of economists and data analysts produce
extensive housing data and research covering more than 350 markets at Zillow
Real Estate Research. The Zillow, Inc. portfolio®,Zillow
Mobile, Zillow Mortgage Marketplace,Zillow Rentals, Zillow Digs™, Postlets®,
Diverse Solutions®, Buyfolio™, Mortech™ and HotPads™. The company is
headquartered in Seattle., Zillow, Zestimate, Postlets and Diverse Solutions are registered
trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks
of Zillow, Inc.

[i] Zillow divides its inventory of for-sale listings into three tiers, based
on the value of all homes within a given metropolitan area, as determined by
Zillow's Zestimate of a home. Bottom-tier homes are the homes that fall into
the bottom third of home values within the metro. Middle-tier homes are homes
that fall into the middle third of home values within the metro. Top-tier
homes are homes that fall into the top third of home values within the metro.

[ii] Zillow examined the total number of homes listed for sale on Zillow on
January 23, 2013 and compared results to January 23, 2012.

SOURCE Zillow, Inc.

Contact: Cory Hopkins, Zillow, +1-206-757-2701 or
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