Less Than a Month of Home Inventory

feb-2013-chart

You probably know it’s a seller’s market. What the photo above means is that, in all surrounding neighborhoods, there is less than one month’s worth of homes to sell. In a balanced market there is six months of inventory, meaning it would take six months to sell all the homes on the market. The fact that all homes on the market are selling in less than a month’s time is extremely unusual. The law of supply and demand dictates rising prices – extremely low supply, mixed with many buyers brought out by the promise of indefinitely low interest rates. Fun, fun if you want to sell!