CAR Report Suggests Seller’s Market

The California Association of Realtors’ data for the latest ‘Unsold Inventory Index’ suggests that the for-sale inventory of homes has dropped by more than 50% from May 2008 to May 2009. This may mean that the market has begun transition into a seller’s market.

The ‘Unsold Inventory Index’ measures the rate of for-sale single family homes sold given the monthly sales pace. To maintain equilibrium, CAR’s index considers a for-sale index of 6 months to represent a healthy supply-demand for both buyers and sellers. In May 2008, the index was 8.7 months, which indicates a buyer’s market. When compared with the index in May 2009, CAR reports that the newest index of 4.2 months shows that the market is leaning towards a seller’s market.

CAR also reports that the median price of existing single-family homes in California has declined, while sales rose at least 35.2% in the month of May. The median price of resale single-family homes increased 4.2% while sales of resale single family homes increased 2.9%.

To find out what percentage of change each county in California experienced, check out CAR’s May 2009 Median Price chart. To find homes in California that reflect this decline, speak with a Movoto-certified agent.