Where did all the inventory go?
The year has ended, and we are left with one pressing question–where did all the inventory go?
The December real estate marketing data is all about inventory. That one data point dictates the type of markets we see in the reporting counties–those markets being sellers, neutral or buyers.
Let’s analyze each county.
The level of inventory indicates that the housing market is a seller’s market. Inventory levels are down to one month.
What is interesting is actual units sold and pending are about the same as last year at this time. What is startling is there are 1000 fewer homes available for sale compared to the previous year–a 45.6% drop.
The average and median sale prices are depreciating, but sellers insist on upping their asking price–31.6% above last year and 7.4% from last month. This increase in asking price affects the listing price to the original sale price ratio, dropping to 97%.
As with Sacramento County, Placer County data indicates a seller’s market. Inventory stands at 1.4 months.
The same pattern continues–sold, and pending properties are steady compared to the previous year.
However, available inventory is down 27.3% from last month and 31.3% from last year.
Though the asking prices are appreciating, actual sold prices are not reflecting the increases. They have been steady throughout the year.
El Dorado County.
Then we come to El Dorado County, a different situation.
Inventory levels are still bouncing along just above the three-month level, indicating a neutral market.
Sold and pending sales are similar to last year. The difference between Ed Dorado County and the other two pertains to available homes to purchase. That number is in-line with the previous year’s data, lower by 2 units.
Maybe the fire insurance issue is causing the difference? One would suspect that Placer County would suffer the same fate.
When it comes to pricing, both asking and average sold prices are depreciating.
Hard to glean much with this month’s data, other than we are heading into the new year with limited inventory.
Sellers, don’t take this as a queue to jack-up your asking price. Buyers are looking for value and will keep their hands in their pockets if it is not perceived.
Price your home correctly, and by all means, make sure it is clean.
Grab a cup of coffee or tea. Here are all the numbers.