The result, month's inventory is almost half of what it was last year at this time (obviously 30% off last year's prices makes a big difference!). The Sacramento Metro area is now down to 4.5 month's inventory. This is below the traditional 6 month mark that is thought to be a balanced market between buyer and seller. The zips below are sorted by month's inventory.
Almost everyone I know that had been waiting to buy a home, has now done so this spring (including several housing bubble bloggers). So what I am wondering...... will the current demand level be sustainable? Or is this just a really big big bounce?
SFH inventory comes from ZipRealty, and sales comes from the SacBee via DataQuick.
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3 comments:
Almost everyone I know that had been waiting to buy a home, has now done so
I think that's a key observation :)
I think that this will run out as a big bounce. There are still alot of REO's that are not being put on the market, as well as the Op-ARM stuff coming over the next few years. Will prices keep going lower, hard to say, but I still think that some of the real bubble places haven't been hit hard yet.
my take: the potential downside is much higher then the potential upside.
don't try to time the market to hit the bottom. When you buy, make sure you will be there for 5+ years.
Now here is one big unknown: if house prices have declined that much, what will happened with a recession and higher interest rates ?
that could spell big trouble down the line.
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