For months the pool of available homes has dramatically dwindled as more buyers have jumped into the recovering housing market. Burgeoning demand for that shrinking supply has fueled home price increases across most of the U.S. and in the most sought-after areas, full-fledged bidding wars amid claims ofnascent housing shortages.

Now that inventory crunch is beginning to ease.  More owners are starting to list their homes for sale, according to Realtor.com. The San Jose, Calif,-based listing site, owned by Move MOVE -1.09% Inc., says listing inventory has surged 25% since the start of the year, outpacing seasonal increases associated with the Spring/Summer selling season. In May inventory levels grew by nearly 6%  from April, to about 1.85 million homes for sale.

“Overall, we’re seeing seller confidence beginning to respond to consumer demand,” said Steve Berkowitz, chief executive of Move, in the report. “Nationally, there are more homes going on the market for a shorter amount of time. And this is happening in our hot markets on a much larger scale.”

Confidence among prospective sellers is rising. A recent survey from Fannie Mae found that 40% of Americans believe now is a good time to sell. That’s up from 30% a month ago and 16% a year ago.

In markets that Realtor.com refers to as “previously hot” like Sacramento and Stockton, Calif., a wave of newly listed homes has begun replenishing inventory levels. Sacramento’s available inventory swelled 35% from a month earlier while Stockton’s surged 37%. Other areas welcoming more listings are Daytona Beach, Fla. and Washington, D.C., with inventory jumping nearly 22% and 13% respectively.

Inventory Levels Easing As Home Prices Rise, Negative Equity Retreats – Forbes.