Home Listings Slide: Good News, Sellers?

Home Listings are declining in several major metro markets. Is it good news for home sellers?
Home Listings are declining in several major metro markets. Is it good news for home sellers?

For the first time in nine months, several U.S. housing markets saw a drop in home listings -– but what does that mean for hard-luck homesellers?

The number of homes listed for sale in 26 major metropolitan areas dropped an average 3.3 percent in October, the first month-over-month drop since January, according to ZipRealty Inc. The data comes from single-family homes, condos and townhouses on local multiple-listings services (MLS).

Typically, analysts would expect to see home listings increase during October, as most homeowners make one final sales pitch before the winter home buying lull sets in. Last October, for instance, housing inventory rose 13 percent in the 26 markets covered by ZipRealty.

So is this good news for homeowners struggling to sell?