From time to time we judge the current ‘health’ of the market by dividing the active listings by the pending listings. For the record, it was Peter B. who agreed with me years ago that the healthy balance is around two actives to one pending. The ‘months of inventory’ is derived from dividing the actives by the September solds.
The 8-to-1 actives-to-pendings ratio and the 13 months of inventory in Rancho Santa Fe can probably classify it as a buyer’s market. But even with our substantially higher prices, the other areas look fairly healthy.