Saturday, November 16, 2013

Quoted in a Bloomberg Article about the shifting dynamics of the real estate market...

If you read Business Week or Bloomberg News, or follow me on Facebook or Twitter, then you may have noticed that one of my clients and I were quoted extensively in an article about the real estate market. Our real estate market here in Sacramento is interesting and has changed a lot over the last 12 months. 

Right now, we have just over 2 months of listing inventory, but that's more than double what we had on the market here in the spring -- for example, as you can see in the chart above in March 2013 - May 2013 there was 1 month of inventory in Sacramento County. Two months of inventory is still wildly low inventory, but that's a lot more than we have been used to for the last year. Inventory, in real estate terms, is basically the number of homes available on the market will be absorbed by buyers in a given month. If 5,700 homes are active on the market in a given month, and 1,500 homes sold in that given month, then that month would reflect an inventory of 3.8 months. In real estate, a market with about 6 months of inventory is said to have equilibrium between buyers and sellers

The increase in inventory in Sacramento, combined with the big cash investors slowing their purchasing here as prices have increased, has shifted the dynamics of the market to one that's a bit more friendly to "normal" buyers just looking for a home. It's a nice change.

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