California Home Sales:
The Story Is The Lack Of Inventory
California Home Sales Continue At A Brisk Pace …
Even As Inventory Shrinks Again
More good numbers posted as California Home Sales continue to display momentum. The real story, though, is the lack of inventory. Statewide, the Unsold Inventory Index is down to 3.1 months. That's down from 5.5 months in October of last year. A supply of 6 to 7 months is considered normal for the state, so we're way undersupplied at present.
Here's an article from the San Jose Mercury News that lays out all the numbers.
"California's housing market c
ontinued its momentum in October, posting strong year-over-year sales and price gains in nearly every county of the state, according to the latest California Association of Realtors' latest sales and price report. The lack of inventory, however, is causing a dilemma in many counties, especially in Silicon Valley" … San Jose Mercury News
California Home Sales Expected To Continue Lively Activity
Most analysts expect California home sales to continue being very active as we move into the new year. Confidence in the stability of the market is growing, and buyers are coming to the realization that now is actually a good time to purchase, if they can qualify. As to when the inventory crunch might begin to abate … that's anybody's guess. Looking at seasonal trends, we might see the beginnings of an increase in the Spring … moving into the summer "Selling Season". However, many influences will play into this and a significant increase in inventory may be a ways off..
California Home Sales.