Here in the San Luis Obispo real estate market we have noticed a decrease in inventories across all segments of the market with the exception of the high end market. As many of you know, I have pointed out any "green shoots" I have notice sprout up. Well here is one of the best written articles about the changing U.S. housing market I have read. It is from the Wall Street Journal's Nick Timiraos. It points out in the major U.S. metro areas all but one of the 146 markets tracked by Realtor.com had fewer homes listed than one year earlier, with Springfield, Ill being the exception. So I think it is finally happening, as I predicted a few months back. With supply and demand in the housing market, when we almost stopped making new homes, eventually the demand would gobble up the supply. We are now seeing this happen. The second part of my prediction was that we would eventually have a housing shortage. Yes, the cycle would turn and housing would go up in price rather than down for the first time in 6 long years. The article has some really cool interactive graphs that were fun to play with. Please read this excellent article at the link below-
http://blogs.wsj.com/developments/2012/02/24/where-are-all-the-home-sellers/
I have also seen a 50% increase in buyer demand on my web page www.myslohomefinder.com So the buyers are coming back, and now we have to wonder where the sellers are? See the below chart showing a decrease in the San Luis Obispo real estate inventory.
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