Dearth of Inventory
From the mercurynews.com:
The Bay Area is seeing more improvement than other markets nationwide, but its lack of inventory is a problem, according to Rick Turley, president of Coldwell Banker Residential Brokerage for the San Francisco Bay Area. Turley recently told Silicon Valley agents they need to educate their clients about the real story behind their local markets.
“We have a dearth of listings everywhere. Inventory is the lowest it’s been in four to five years in every county,” Turley told members of the Silicon Valley Association of Realtors.
Turley said the market is heating up but hampered by very low inventory, which have resulted in numerous multiple offers. Places like San Francisco have a mere three months supply of inventory. A healthy market has at least four to six months supply of inventory, said Turley.
“Inventory is what is going to put a cap on what we do this year,” said Turley.
How about the detached inventory San Diego? These are the number of active and sold listings – according to this graph, San Diego has less than a month’s supply of houses for sale:
Put the median prices aside, the real story is how the inventory has dried up. The next phase of psycho-babble in the media will be how sales are dropping, but it will be because buyers are sidelined due to the lack of houses to purchase. This year’s data will be more perplexing than ever for the media types desperate for a quick sound-bite!