California Housing Still Over Priced: Examining Case Shiller Data and Seasonal Distortions. The Impact of Shadow Inventory on Price.
One simple rule that every student of introductory economics understands is that a product that has more demand than supply will typically push the price up. The recent stabilization in housing prices has given the impression that the housing market is correcting on its own. Nothing can be further from the truth. There are three [...]
California Market Inventory: Is the Lower End Running out of Steam? 5 Key Factors Impacting California Inventory. Borrowers Don’t Have Bubble Purchasing Power.
How many homes are currently for sale in California? This rather simple question seems to be missed in many mainstream articles and is rather important to the question of the overall health of the California housing market. In many cases it is assumed that having less than six months of inventory reflects a healthy and [...]
How Much California Inventory? 3.9 Months from Public Data. A drop from 6 Months at the Start of the year and down from 16 Months Reached in Early 2008. Yet Distress Properties are still a Big Part of the Market.
According to recent data from the California Association of Realtors, there is only 3.9 months of unsold inventory on the market. This is actually low. For many that don’t follow the housing market a healthy amount of inventory hovers around 5 to 6 months. 3.9 months is well below that. In early 2008 when few [...]