According to the California Association of Realtors (C.A.R.), “The director of Harvard’s Joint Center for Housing Studies predicts continued price declines in California, but at a slower rate, which generally indicates the end of price drops.” Further, “C.A.R.’s Unsold Inventory Index stood at 6.5 months in February, compared with 15.3 months in February 2008.”
In my latest article, “Buyers and Sellers Confused by Contradictory Trends,” I pointed out the low inventory in five of Oakland’s most popular neighborhoods. In March 2009, this figure was fewer than three months.
Such a low inventory is leading to multiple offers on some properties, despite the fact that this is a buyer’s market. No wonder buyers and sellers are confused.
Inventory typically increases April through May, so we will have to see what happens.