San Diego Real Estate Market - Months of Inventory - February 1, 2009

Subtle changes are often missed, but when we have snapshots at different points in time, the changes are more noticeable - as shown here with the market inventory. Below are two charts of the San Diego Real Estate Market - months of inventory - by price range.

Present market snapshot

Mid-December market snapshot

The primary takeaway from these charts is that the San Diego real estate market is stable. The total months of inventory appears as similar today as it did nearly two months ago, with one notable exception, we have shrunk the $600,000+ inventory by over a month.

As reported previously, "I believe we will see more inventory chewed off at the mid-level. I don't see prices increasing much, until the market absorbs another two months of inventory." We can see a reduction of inventory. Unless the shadow inventory starts getting released, we will see some serious price increases at the lower and mid-level price ranges.

Unfortunately, this only tells half the story - showing basic supply and demand relationships. We need to go back to see if we can track the pricing trends at the higher end to see if the softness has translated into price declines.