From a high of 25 months in January 2008, the inventory of existing homes for sale has fallen to a 4 year low of barely 5 months at the end of October 2011. With the long standing definition of a balanced market being 6 months of inventory, the current levels reflect a much healtier market place for all concerned.
In May of 2005, the local inventory fell to 1.2 months and the resutling prices spiraled out of control upward. As the market then changed direction, the inventory of resales grew in excess of 5 years in some price ranges. Like many things that move to the extremes either way, the result in usually not a good one. With the inventory levels back in a “normal” balance, the entire market place for residential housing becomes more stable, more predictable and therefore should return to the pattern of more historic appreciation rates of 3-4% per year. Check in with us or your local agent for more details on what this means about whether or not this is indeed the time for you to make a move.