Sacramento Real Market Commentary - 2008 05

If you read the local newspaper, you may have seen that April's home sales made front page news. By itself, it's a sign that there were more buyers in the market than in March. But more enlightening, and not understood by the news writers, is that inventory indeed dropped by a more significant amount. Instead of 8.3 months of inventory (length of time to sell all Active listings, all things remaining equal), there is now only 5.9 months' inventory. That is a healthy number. If it's too high, supply is higher than demand. If it's too low, well, it's the opposite. Anywhere between 4 and 7 is a sweet-spot.

But stories about the trenches from someone in a cozy tent cannot depict the truth when compared to someone actually in the trenches. Read my trench story here... http://JayEmerson.com/Indicators.asp