What Does Months of Inventory Tell Us
Essentially it is telling us how active the housing market is. Because of the craziness of the current market, even though the inventory numbers are low - which would indicate a sellers market- in actuality it is still a buyer's market.
How do we know - my analysis shows while number of units sold (volume) is up, prices are still down in many areas. When we see a rise in prices along with low inventories, then we will be in a sellers market.
Contra Costa Inventory of Homes by City
The majority of the Cities show less than 3 months of inventory. Buyers are realizing that with a limited selection of homes to choose from, when they see something that fits their requirements they need to make an offer. We are also seeing that the sales price to list price is in the 3% and under range in popular areas such as Danville and San Ramon.
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