Supply & Demand – they work together – they work in concert – they are forever tied together in any theory regarding market dynamics. Ask any person and they will offer a plausible explanation for how each effects the other.
The purpose of this post is to simply point out what the 10 years sales and inventory charts are telling me. Homes for sale in El Dorado Hills & Folsom are back to 2002 levels. If you are a home buyer you know exactly what I mean. This reduced level of inventory is making it very dificult to find homes. In fact, I would argue that the inventory is much lower on a practical basis. If you consider that short sales make up at least 1/3 of the inventory, buyers have even less practical inventory to choose from. A fellow Lyon Realtor® DeeDee Riley posted a 5 year perspective with similar thoughts on the steep decline in inventory.
Question: Looking at supply only, do you think that it’s time for cautious sellers to get their homes on the market?